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Finance Review Study Bank Risk-neutral densities derived from option prices are a. Unaffected by the implied volatility of the underlying asset b. Characterized by a

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Finance Review Study Bank Risk-neutral densities derived from option prices are a. Unaffected by the implied volatility of the underlying asset b. Characterized by a high expected return value and fat tails C. Very stable and changing little through time d. Very sensitive to economic conditions and changing all the time

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