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________ on the Underlying Asset Tend to Decrease the Price

Question 52

Multiple Choice

________ on the underlying asset tend to decrease the price of a call option because the cash payments make it more attractive to hold the underlying asset than to hold the option. For put options, ________ on the underlying asset tend to increase the price.


A) Noncash payments; cash payments
B) Cash payments; noncash payments
C) Cash payments; cash payments
D) Noncash payments; noncash payments

Correct Answer:

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