You are watching the option quotes for your favorite stock, when suddenly there is a news announcement.

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You are watching the option quotes for your favorite stock, when suddenly there is a news announcement. Explain what type of news would lead to the following effects:
a. Call prices increase, and put prices fall.
b. Call prices fall, and put prices increase.
c. Both call and put prices increase?
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Related Book For  book-img-for-question

Corporate Finance

ISBN: 978-0134083278

4th edition

Authors: Jonathan Berk, Peter DeMarzo

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