How does the price of a put option respond to an exercise price increase?
A)Increases
B)Decreases
C)Remains the same
D)Goes to zero

Name: How does the price of a put option respond to an exercise price increase? A)Increases B)Decreases C)Remains the same D)Goes to zero
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Question

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The price of a put option increases with an increase in the exercise price because the option becomes more valuable as the right to sell the underlying asset at a higher price becomes more attractive.

How Does the Price of a Put Option Respond to an Exercise