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Question 19 5 pts A European call and a European put on a stock have the same strike price and time to maturity. At 13:00

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Question 19 5 pts A European call and a European put on a stock have the same strike price and time to maturity. At 13:00 on a certain day, the price of the call is $5 and the price of the put is $6. At 13:01 news reaches the market that has no effect on the stock price or interest rates, but increases volatilities. As a result, the price of the call changes to $5.50. Which of the following is correct? The put price increases to $7.00 The put price increases to $6.50 It is possible that there is no effect on the put price The put price decreases to $5.50

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