In relation to options when interest rates decrease, the:Question 6Select one:a.price of call options generally increases.b.price of the underlying share usually decreases.c.price of put options generally increases.d.volatility of the underlying asset falls.

The value of a put option rises when the underlying asset:Question 6Select one:a.has reduced volatility.b.has relatively short maturity.c.experiences price increases.d.experiences price falls.

When the market interest rates decline after a bond is issued, the:Group of answer choicesmarket value of the bond increases.face value of the bond decreases.market value of the bond decreases.bond price is at a discount.

When the stock price increases with all else remaining the same, which of the following is true? A. Puts increase in value while calls decrease in value. B. Both calls and puts decrease in value. C. Calls increase in value while puts decrease in value. D. Both calls and puts increase in value.

Which of the following factors would tend to increase the size of the premium on an options contract?Question 7Select one:a.The current short-term interest rates are highb.The option is near its expiration datec.The price volatility of the underlying asset is lowd.The option is far off its expiration date

.What is the difference between a call option and a put option?*1 pointa. A call option gives the holder the right to buy an underlying asset, while a put option gives the holder the right to sell an underlying asset.b. A call option gives the holder the right to sell an underlying asset, while a put option gives the holder the right to buy an underlying asset.c. A call option and a put option are the same thing.d. A call option and a put option have no relation to buying or selling an underlying asset