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A European call and a European put on a stodk have the same strike price and time to maturity. At 1 0 : 0 0
A European call and a European put on a stodk have the same strike price and time to maturity. At :am on a certain day, the price of the call is $ and the price of the put is $ At : am news reaches the market that has no effect on the stock price or interest rates, but increases volatilities. As a result the price of the call changes to $ Which of the following is correct?
a The put price decreases to $
b The put price increases to $
c It is possible that there is no effect on the put price
d The put price increases to $
Clear my choice
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