Business, 25.09.2021 01:00 Arealbot

An investor purchased Option A and Option B for a certain stock today, with strike prices 70 and 80, respectively. Both options are European one-year put options. Determine which statement is true about the moneyness (in-the-money means that it has positive payoff to the holder, out-of-the-money means it does not) of these options, based on a particular stock price.

I) If Option A is in-the-money, then Option B is in-the-money.

II) If Option A is at-the-money, then Option B is out-of-the-money.

III) If Option A is in-the-money, then Option B is out-of-the-money.

IV) If Option A is out-of-the-money, then Option B is in-the-money.

V) If Option A is out-of-the-money, then Option B is out-of-the-money.

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An investor purchased Option A and Option B for a certain stock today, with strike prices 70 and 80,...

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