Which of the Following Will Produce the Highest Put Price

question 40

Multiple Choice

Which of the following will produce the highest put price, all else constant? Assume that the options are all in-the-money.

• A) $45 stock price; 50% standard deviation.
• B) $45 stock price; 75% standard deviation.
• C) $50 stock price; 50% standard deviation.
• D) $50 stock price; 75% standard deviation.
• E) Not enough information.

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