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Which of the following statements is true? The price of a European call option can sometimes decrease with an increase in time to maturity if

Which of the following statements is true?

The price of a European call option can sometimes decrease with an increase in time to maturity if dividends are paid.

The price of a European put option can never decrease with an increase in time to maturity.

The price of an American put option can never decrease with an increase in time to maturity.

Which of the following statements is true?

The current stock price is $71, and you create a protective put with a strike price of $66. If the put premium is $3.00, the maximum loss that you can incur is $8.00.

One of the reasons for the collar strategy is to reduce the premium on a protective put.

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