Question: Answer all questions 1. a) Explain the relationship between strike prices and implied volatilities under a price jump scenario. Total [5 Marks] b) How does

Answer all questions 1. a) Explain the relationship between strike prices

Answer all questions 1. a) Explain the relationship between strike prices and implied volatilities under a price jump scenario. Total [5 Marks] b) How does a dividend payment impact the option price? Total [5 Marks] Total [10 Marks]

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c. What steps can you take to help eliminate the stress?

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