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The table below shows the directional effects (up or down) of variables on call option prices (holding all other variables constant). Fill in the corresponding

The table below shows the directional effects (up or down) of variables on call option prices (holding all other variables constant). Fill in the corresponding effects for put option values, with a brief explanation.

If This Variable Increases

Value of a Call Option

Value of a Put Option

Reason?

Stock price, S

Increases

?

Exercise price, X

Decreases

?

Volatility, s

Increases

?

Time to expiration, T

Increases

?

Interest rate, rf

Increases

?

Dividend payouts

Decreases

?

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