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Homework answers / question archive / Please mark the only incorrect statement about the determinants of the value of an American put option: a
Please mark the only incorrect statement about the determinants of the value of an American put option: a. the put premium P will be lower if the time to expiration is shorter b. the lower the stock price the higher the put's premium P Ο Ο Ο C. the higher the volatility of the stock price the higher the premium P d. changes in interest rate have no effect on the put's premium P
Option D is incorrect Since interest will have impact on premium directly.
All other statement are correct since time has direct relationship , stock price has inverse relationship and volatility has direct relationship wit premium
