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Consider a European option on a non-dividend-paying stock, where the stock price is $88, the strike price is $79, the risk-free rate is 15%, the

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Consider a European option on a non-dividend-paying stock, where the stock price is $88, the strike price is $79, the risk-free rate is 15%, the time to maturity is 34 weeks and the volatility is 11% per annum. (a) What happens to the put option price when the risk-free rate becomes 17%? (b) By how much? A) Decrease (B) Increase

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