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Which ONE of the following statements is INCORRECT? 2 A . Everything else equal, the higher the current stock price is , the higher the
Which ONE of the following statements is INCORRECT?
A Everything else equal, the higher the current stock price is the higher the call prices are
and the lower the put prices are.
B For putcall parity to be held, the call option and the put option must be European, on
the same underlying stock, with the same strike prices and expiration date.
C Everything else equal, the longer the time to maturity, the more valuable the options are
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