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1.You currently own both a call option and a put option on the same stock. Explain what will happen to the prices (values) of both

1.You currently own both a call option and a put option on the same stock. Explain what will happen to the prices (values) of both options given the following changes, and justify your reasons. Consider each change as independent of the other changes.

a.The price of the underlying stock decreases.

b.The time to maturity of the option nears.

c.The underlying stock becomes more volatile.

The underlying stock increases its dividends

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