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viii. Suppose you buy a call option and a put option. Which of the following is CORRECT? a. If both options are in the money,

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viii. Suppose you buy a call option and a put option. Which of the following is CORRECT? a. If both options are in the money, your net profit/loss will be positive. b. If both options are out of the money, your net profit/loss will be positive. c. If the call is in the money and the put is out of the money, your net profit/loss will be positive. d ir the calli ou ofthney and the put the oneyour net profi/loss will be positive. None of the above. e. ix. A put option's value increases as... a. b. //c. d. time to expiration increases, the risk-free rate increases, and volatility of the underlying increases. time to expiration decreases, the risk-free rate decreases, and volatility of the underlying decreases. time to expiration increases, the risk-free rate increases, and volatility of the time to expiration decreases, the risk-free rate decreases, and volatility of the underlying increases None of the above. e

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