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i. A put option's value increases as.. a. time to expiration increases, the risk-free rate increases, and volatility of the b. time to expiration decreases,

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i. A put option's value increases as.. a. time to expiration increases, the risk-free rate increases, and volatility of the b. time to expiration decreases, the risk-free rate decreases, and volatility of the c. time to expiration increases, the risk-free rate increases, and volatility of the d. time to expiration decreases, the risk-free rate decreases, and volatility of the e. None of the above underlying increases. underlying decreases. underlying decreases. underlying increases. Suppose a stock is trading for $50 and a call option on the stock has an exercise price of $25. There is arbitrage if the call option is trading at ii. a. $40 b. $30. c. $20. iii. Read and van Leeuwen's findings about subjects' preference for frit versus chocolate illustrate which bias? a. framing b. anchoring. c. time-inconsistent preferences. d. diversification heuristic. e. quasi-magical thinking. iv. Barber and Odean's study of men's and women's trading behavior concludes that... a. on average, men hurt their investment results by trading excessively, but on average, women hurt their investment results by trading excessively, but men do not. on average, both men and women hurt their investment results by trading excessively, but the effect is stronger for men. on average, both men and women hurt their investment results by trading women do not. b. c. d. excessively, but the effect is stronger for women. e. none of the above

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