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Packers announces a major expansion into automobiles. This announcement causes the price of Packers stock to increase, but also causes an increase in price volatility
Packers announces a major expansion into automobiles. This announcement causes the price of Packers stock to increase, but also causes an increase in price volatility (variance) of the stock. What is the impact of these changes on a call on Packers? Explain. Assume you own (are long) the call.
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