If the stock price decreases, the price of a put option on that stock __________, and that of a call option __________.

A. decreases; increases
B. decreases; decreases
C. increases; decreases
D. increases; increases
E. does not change; does not change


C. increases; decreases

As stock prices decrease, call options become less valuable (the owner cannot buy the stock at a bargain price). As stock prices decrease, put options become more valuable (the owner can sell the stock at a price greater than market price).

Business

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