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19. If the volatility implied from an at-the-mone'glr put stock option were used to price other put options on the stock, which of the following

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19. If the volatility implied from an at-the-mone'glr put stock option were used to price other put options on the stock, which of the following would be true? A. Out-of-the moneyr and in-the-mone'fr prices would be too high B. Out-of-the moneyr and in-the-mone'glr prices would be too low E. 1'.'.'iut-of-the-monewr option prices would be too high and in-the-money option prices would be too low D. i'Jutof-the-monewr option prices would be too low and in-the-moneaur option prices would he too high 20. The implied volatilities for strike prices of 1-1 and 1.2 when the time to maturity is 6 months are 20% and 22%. The implied volatilities for strike prices of 1.1 and 1.2 when the time to maturity is 1 year are 13.3% and 2D.2%. Using linear interpolation, what is the implied 1volatilityr for a strike price of 1.12 and a time to maturity of 10 months? A. 19.24% B. 19.52% C. 20.43% D. 19.96%

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