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1) Briefly answer the following questions: a. What is a put option? b. If you knew that a firms stock price would fall, how could

1) Briefly answer the following questions:

a. What is a put option?

b. If you knew that a firms stock price would fall, how could you make money from purchasing put

options? Explain.

c. What is a call option?

4. If you knew that a firms stock price would increase, how could you make money from purchasing

call options? Explain.

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