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Which of the following statements is false regarding the effect of underlying price changes on options prices? a. with all other variables constant, when an

Which of the following statements is false regarding the effect of underlying price changes on options prices?

a. with all other variables constant, when an underlying stock goes up its put options become more valuable

b. with all other variables constant, when an underlying stock goes up its call options become more valuable

c. with all other variables constant, when an underlying stock goes up someone who is short an ATM call will have the position move in their favor

d. with all other variables constant, when an underlying stock goes down someone who is short an ATM call will have the position move in their favor

e. with all other variables constant, when an underlying stock goes up someone who is short an ATM put will have the position move in their favor 5

f. b & d

g. a & c

h. none of the above

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