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You are watching the option quotes for your favorite? stock, when suddenly there is a news announcement. Explain what type of news would lead to

You are watching the option quotes for your favorite? stock, when suddenly there is a news announcement. Explain what type of news would lead to the following? effects:

a. Call prices? increase, and put prices fall.

b. Call prices? fall, and put prices increases

c. Both call and put prices increase

image text in transcribed

a. Call prices increase, and put prices fall. Select the best choice below.) O A. Bad news, which lowers the stock's price. O B. Good news about the stock, which raises its stock price. O C. News that increases the volatility of the stock. O D. None of the above b, Call prices fa and put prices increase (Select the best choice below.) O A. Bad news, which lowers the stock's price O B. News that increases the volatility of the stock. O C. Good news about the stock, which raises its stock price O D. None of the above c. Both call and put prices increase. (Select the best choice below.) O A. News that increases the volatility of the stock. O B. Bad news, which lowers the stock's price O C. Good news about the stock, which raises its stock price O D. None of the above

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