Question: a) Explain and discuss the parameters that influence the price of European-style options and the nature of their impact. (60 marks) b) Discuss ways in

  1. a) Explain and discuss the parameters that influence the price of European-style options and the nature of their impact.

(60 marks)

b) Discuss ways in which a put or a call option may be used in hedging and speculation.

(40 marks)

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