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Define the relationship between the value

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Define the relationship between the value of a put option & the following six factors: Stock Price, the Exercise (and/or Strike) price, the prevailing Interest Rate, the Time to Expiration, the Volatility of underlying stock price and any Dividends payable over the period. Outline the risks involved in writing a Put an instrument for someone else to buy. What must any such option writer be expecting to happen in order to profit from such a position?

Reference no: EM131782019

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