The price of a stock put option is __________ correlated with the stock price and __________ correlated with the strike price.
A) positively; positively
B) negatively; positively
C) negatively; negatively
D) positively; negatively
E) not; not

Question

Quizplus · Accepted Answer

The price of a stock put option is negatively correlated with the stock price (as the stock price decreases, the value of the put option increases) and positively correlated with the strike price (as the strike price increases, the value of the put option also increases).

The Price of a Stock Put Option Is __________ Correlated