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A. Is it riskier to write covered or uncovered call options? Explain B. The current price of a stock is $56. Find the lower bound
A. Is it riskier to write covered or uncovered call options? Explain
B. The current price of a stock is $56. Find the lower bound of the option prices (i.e. find the value) assuming the following exercise prices?
a) 55 call b) 60 call c) 55 put d) 60 put
C. Technical analysts believe that one can use past price changes to predict future price changes. How do they justify this belief?
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