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Suppose that an investor has sold a two-month European PUT option on ABC stock, a hypothetical company, with strike price of $30 for a price

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Suppose that an investor has sold a two-month European PUT option on ABC stock, a hypothetical company, with strike price of $30 for a price of $1 the when spot price of the ABC stock was $29. What happens to option price if amount of the expected dividends on ABC stock decreases over the life of the option? 01. Option price will remain unaffected. 2. Option price increase. 3. Option price decreases. 4. None of above

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