(Implied volatility) Consider a put option trading on a stock with a year to maturity. The implied...

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(Implied volatility) Consider a put option trading on a stock with a year to maturity. The implied volatility of the option at the opening is 25% and at closing 22%. Assuming that the stock prices hasn’t changed, what do you conclude about the option price; has it increased or decreased?

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Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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