Concept – How Changes affect Call Option and Put Option Prices

Principles of Corporate Finance

Brealey, Myers, and Allen

13th Edition

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How do the stock price, the exercise price, the risk-free rate, the expiration date, volatility and the passage of time affect the values of calls and puts? (GRID)

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  • Search Terms: a call changes, decrease? call put a. stock does equal? extended increases increases e. volatility falls decreases decreases f. time following how increase increased decreases increases c. risk-free increases increases decreases b. exercise increases increases decreases d. expiration is of option or other passes decreases decreases price rate respond the things to
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