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Q:Consider an American call option on stock XYZ that matures 1 year after. The stock pays no dividend until 18 months after. Would you exercise

Q:Consider an American call option on stock XYZ that matures 1 year after. The stock pays no dividend until 18 months after. Would you exercise the option before the maturity? Explain in fewer than five lines.

Suppose the interest rate increases. What will happen to the call and put prices, other things being equal? Explain in fewer than five lines.

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