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Explain how each of the following events will affect the value of a european put option on a stock. 1. A decline in the price
Explain how each of the following events will affect the value of a european put option on a stock.
1. A decline in the price of the underlying stock
2. A decline in the volatility of the underlying stock price
3. The passing of one week
4. The payment of a cash dividend on the underlying stock
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