Existing market price of the underlying financial instrument

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1. For Call Options, the __________ the existing market price of the underlying financial instrument relative to the exercise price, the ____________ option premium. (lower/higher)

2. For Put Options, the __________ the existing market price of the underlying financial instrument relative to the exercise price, the ____________ option premium. (lower/higher)

3. The higher the call option premium, other things being equal, ______________ the existing price of the security relative to the exercise price. (lower/higher/no impact)

Reference no: EM131605844

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