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Business, 08.04.2020 04:29 Karinaccccc

Which of the following statements is CORRECT? Question 3 options: Call options generally sell at a price less than their exercise value. If a stock becomes riskier (more volatile), call options on the stock are likely to decline in value. Call options generally sell at prices above their exercise value, but for an in-the-money option, the greater the exercise value in relation to the strike price, the lower the premium on the option is likely to be. Because of the put-call parity relationship, under equilibrium conditions a put option on a stock must sell at exactly the same price as a call option on the stock.

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Which of the following statements is CORRECT? Question 3 options: Call options generally sell at a p...
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