Question: Assume you are looking at a graph to visualize the concept. You are looking at a graph of put prices against strike prices, for put

Assume you are looking at a graph to visualize the concept.

You are looking at a graph of put prices against strike prices, for put options of the same maturity on the FTSE100. Overnight, the slope of the graph has become steeper for deep out of the money puts. What would you infer from this? A The Argentine Peso has weakened. B Demand for UK goods and services had increased. C Bonds have become cheaper. D The risk-neutral probability of a crash in the FTSE100 has risen E The risk-neutral probability of a small correction in the FTSE100 has risen. You are looking at a graph of put prices against strike prices, for put options of the same maturity on the FTSE100. Overnight, the slope of the graph has become steeper for deep out of the money puts. What would you infer from this? A The Argentine Peso has weakened. B Demand for UK goods and services had increased. C Bonds have become cheaper. D The risk-neutral probability of a crash in the FTSE100 has risen E The risk-neutral probability of a small correction in the FTSE100 has risen

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