The value of a stock put option is positively related to
A) the time to expiration.
B) the striking price.
C) the stock price.
D) the time to expiration and the striking price.
E) All of the options are correct.

Question

Quizplus · Accepted Answer

The value of a stock put option increases with both the time to expiration and the striking price. More time until expiration means a greater chance the stock price will fall below the strike price, and a higher strike price relative to the stock price increases the option's intrinsic value.

The Value of a Stock Put Option Is Positively Related