In the Black-Scholes Option Pricing Model,an Increase in Security Price

question 18

Multiple Choice

In the Black-Scholes option pricing model,an increase in security price (S) will cause

• A) An increase in call value and an increase in put value
• B) An increase in call value and a decrease in put value
• C) A decrease in call value and an increase in put value
• D) A decrease in call value and a decrease in put value
• E) An increase in call value and an increase or decrease in put value

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