A European Call and a European Put on a Stock

question 10

Multiple Choice

A European call and a European put on a stock have the same strike price and time to maturity.At 10:00am on a certain day,the price of the call is $3 and the price of the put is $4.At 10:01am news reaches the market that has no effect on the stock price or interest rates,but increases volatilities.As a result the price of the call changes to $4.50.Which of the following is correct?

• A) The put price increases to $6.00
• B) The put price decreases to $2.00
• C) The put price increases to $5.50
• D) It is possible that there is no effect on the put price

Learn about the significance of child-directed speech in language acquisition.

Understand the experimental methods used to study cognitive and language development in children.

Distinguish between implicit and explicit knowledge in language learning.

Recognize the early signs and stages of language development.

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Definitions:

Experiments

Controlled procedures carried out to investigate the effect of a variable by providing precise data and observations.

Extra X Chromosome

A genetic condition where an individual, typically male, has an additional X chromosome, leading to symptoms such as reduced fertility and physical characteristics often associated with Klinefelter syndrome.

Condenses

The transformation of a substance from its gaseous state to its liquid state, often as a result of cooling.

Females

Individuals of a species that are typically characterized by the ability to produce eggs or bear offspring.