Exam 16: Option Valuation

A one dollar increase in a stock's price would result in __________ in the call option's value of __________ than one dollar.

The __________ is the stock price minus exercise price,or the profit that could be attained by immediate exercise of an in-the-money call option.

Investor A bought a call option and Investor B bought a put option.All else equal if the interest rate increases the value of Investor A's position will ______ and the value of Investor B's position will _______.

The price of a stock put option is __________ correlated with the stock price and __________ correlated with the exercise price.

A higher dividend payout policy will have a __________ impact on the value of a put and a __________ impact on the value of a call.