Question: Multiple choice Q: Black-Scholes model for pricing a call option and a put option below: What happens to the call option and put option values
Multiple choice Q:
Black-Scholes model for pricing a call option and a put option below:
What happens to the call option and put option values when the strike price and payout rate increase?
Answer from one of the following:
Call option value DECREASE; Put option value INCREASE
Call option value INCREASE; Put option value DECREASE
Call option value INCREASE; Put option value INCREASE
no net change
Call option value DECREASE; Put option value DECREASE
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