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- If the time to expiration falls and the put price rises, then what has happened to the put option’s implied volatility?What impact does each of the followingparameters have on the value of a call option?(2) Strike priceWhich option exposes the holder to the greatest risk of loss? O Short call option O Long call option O Long put option O Short put option
- What is out-of-the money option?How is the call option price impacted by varying the risk free rate of interest? How is the call option price impacted by varying the volatility?Which of the following is NOT a real option? A. An abandonment option B. An expansion option C. A stock option D. An investment timing option