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a)Six factors affect the value of call options on stocks. Three of these factors are: the current price of the stock, the time remaining until
a)Six factors affect the value of call options on stocks. Three of these factors are: the current price of the stock, the time remaining until the option expires, and the dividend on the stock. Identify the other three factors and explain how and why changes in each of these three factors affect the value of call options. b) Explain under what circumstances an investor would want to purchase both a call option and a put option on the same security.
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