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Consider a European call option and a European put option with the same strike price and maturity date. If there is a sudden reduction in
Consider a European call option and a European put option with the same strike price and maturity date. If there is a sudden reduction in dividends to be paid on the underlying stock, which of the following will not necessarily occur, assuming all else remains the same? Oa. The gap between the call and the put prices will be reduced Ob. The price of the put will fall C. The gap between the call and the put price will be increased if the call price is higher than the put price Od. The call price will increase Oe. The gap between the call price and the put price will be reduced if the put price is higher than the call price
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