Question
Peter has bought a call option that will expire in 6 months. On the other hand, May has written a put option with a 9-month
Peter has bought a call option that will expire in 6 months. On the other hand, May has written a put option with a 9-month maturity. All else equal, the value of Peter's position will _______________ and the value of May's position will _____________.
Multiple Choice
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decrease; decrease
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increase; decrease
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increase; increase
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decrease; increase
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Valuation, Measuring And Managing The Value Of Companies
Authors: Tim Koller, Marc Goedhart, David Wessels
7th Edition
1119611865, 9781119611868
