Question: Please answer this question. Thank you! 5. Compare the following two put options, written on the same stock: Call T S K Implied volatility Dividend

Please answer this question. Thank you!

5. Compare the following two put options, written on the same stock: Call T S K Implied volatility Dividend yield A 1 50 50 40% D B 2 50 50 40% 0 Which option will have the greater increase in price if implied volatility increases to 45%? Explain briey

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