Question
1. Which of the following is NOT true? a. The writer of a call will want stock prices to decrease b. The buyer of a
1. Which of the following is NOT true?
a. The writer of a call will want stock prices to decrease
b. The buyer of a put will want stock prices to decrease
c. The writer of a put will want stock prices to decrease
d. The buyer of a call will want stock prices to increase
2. Which of the following is NOT true?
a. The buyer of a put will be willing to pay more for a (similar) put with a larger exercise price than for a put with a smaller exercise price.
b. The buyer of a call will be willing to pay more for a (similar) call with a larger exercise price than for a call with a smaller exercise price.
c The longer the time to expiration, the greater the value of a put to the buyer of the put.
d. You would sell a call if you expect prices to decrease.
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