3. 4. 5. High volatility of the price of a stock a. b. C. d. e....
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3. 4. 5. High volatility of the price of a stock a. b. C. d. e. a. b. Longer time until expiration of an option C. d. e. Will add to the value of a call option on that stock a. b. Will take away from the value of a call option on that stock Will take away from the value of a put option on that stock Both (a) and (c) Both (b) and (c) C. d. e. How do dividends affect option values? Adds to the value of a call, but takes away from the value of a put Adds to the value of a put, but takes away from the value of a call Adds to the value of both puts and calls Takes away from the value of both puts and calls Adds to the value of a call, but does not affect the value of a put Dividends increase call option values and decrease put option values Dividends decrease call option values and increase put option values Dividends increase the value of both puts and calls Dividends decrease the value of both puts and calls Put and call values are not affected by dividends 3. 4. 5. High volatility of the price of a stock a. b. C. d. e. a. b. Longer time until expiration of an option C. d. e. Will add to the value of a call option on that stock a. b. Will take away from the value of a call option on that stock Will take away from the value of a put option on that stock Both (a) and (c) Both (b) and (c) C. d. e. How do dividends affect option values? Adds to the value of a call, but takes away from the value of a put Adds to the value of a put, but takes away from the value of a call Adds to the value of both puts and calls Takes away from the value of both puts and calls Adds to the value of a call, but does not affect the value of a put Dividends increase call option values and decrease put option values Dividends decrease call option values and increase put option values Dividends increase the value of both puts and calls Dividends decrease the value of both puts and calls Put and call values are not affected by dividends
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Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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