Question

The price of a stock put option is __________ correlated with the stock price and __________ correlated with the strike price. negatively; negatively not; not positively; positively negatively; positively positively; negatively

Answer 1

Answer:

Negatively, positively

Explanation:

A stock put option is a stock/market instrument that allows a stock to be sold, at a certain price and at any time to another buyer.

A strike price is the price that a stock seller decides to sell his stocks after receiving offers.

For the above question, the Stock put option is negative related to the stock price and positively related to the strike price.

This can be translated to simply mean that the price of a stock is not subject to or affected by the stock price but rather by the price that the seller chooses to sell.

Cheers.