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Determinants of Put and Call Option Values - 5 points a. Explain why a call option value decreases when the stock price decreases, you may
Determinants of Put and Call Option Values - 5 points a. Explain why a call option value decreases when the stock price decreases, you may want to refer to a formula we discussed in class. (2 points) b. Explain why a put option value decreases when the interest rate increases. (2 points) c. What happens to the value of either a call or put option when a dividend is paid? (1 point)
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