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Question 5 Assume a stock announces an unexpected boost in its future dividends, but this does not change the current market value of the stock.

Question 5

Assume a stock announces an unexpected boost in its future dividends, but this does not change the current market value of the stock. What would you expect to happen to the values of options on that stock?

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The value of call options to rise and the value of put options to fall.

The value of put options to rise and the value of call options to fall.

The value of both calls and puts to rise.

The value of both calls and puts to fall.

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