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Option Values. How does the price of a put option respond to the following changes, other things equal? Does the put price go up or
Option Values. How does the price of a put option respond to the following changes, other things equal? Does the put price go up or down? (LO23-2)
a) Stock price increases.
b) Exercise price is increased.
c) Expiration date of the option is extended.
d) Volatility of the stock price falls.
e) Time passes, so the options expiration date comes closer.
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