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Investor a Bought a Call Option and Investor B Bought

Question 44

Multiple Choice

Investor A bought a call option and Investor B bought a put option.All else equal if the underlying stock price volatility increases the value of Investor A's position will ______ and the value of Investor B's position will _______.


A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Correct Answer:

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