Other things equal, the price of a stock put option is positively correlated with the following factors except
A) the stock price.
B) the time to expiration.
C) the stock volatility.
D) the exercise price.

Question

Quizplus · Accepted Answer

The price of a stock put option decreases as the stock price increases, making it negatively correlated with the stock price. Other factors like time to expiration, stock volatility, and the exercise price generally have a positive correlation with the price of a put option.

Other Things Equal, the Price of a Stock Put Option