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Consider what happens to the prices of European options when the strike price increases and other parameters remain constant. Which one of the following statements
Consider what happens to the prices of European options when the strike price increases and other parameters remain constant. Which one of the following statements is most correct?
a The price of a call option decreases, and the price of a put option decreases
b The price of a call option decreases, and the price of a put option increases
c The price of a call option increases, and the price of a put option decreases
d The price of a call option increases, and the price of a put option increases
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