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TATEMENT 1: Call options' value go up if the market perceives the underlying asset to be undervalued. STATEMENT 2: Put options' increase in value is parallel to the increase of risk of an investment. Both statements are true Both statements are false Only statement 1 is true Only statement 2 is true

TATEMENT 1: Call options' value go up if the market perceives the underlying asset to be undervalued. STATEMENT 2: Put options' increase in value is parallel to the increase of risk of an investment. Both statements are true Both statements are false Only statement 1 is true Only statement 2 is true

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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STATEMENT 1: Call options' value go up if the market perceives the underlying asset to be undervalued.

STATEMENT 2: Put options' increase in value is parallel to the increase of risk of an investment.

Both statements are true

Both statements are false

Only statement 1 is true

Only statement 2 is true

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