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Assume the standard deviation of the returns on ABC stock increases. This change will ________ the value of the call options and ________ the value of the put options on ABC stock.
Marginal Cost
The extra cost triggered by the production of an additional unit of a product or service.
Marginal Revenue
The additional income from selling one more unit of a good or service.
Marginal Cost
The hike in overall costs when one extra unit of a product or service is produced.
Economic Profits
The difference between total revenue and total costs, including both explicit and implicit costs, representing surplus remaining after all costs have been paid.
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