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Explain market dynamics that made put options more valuable

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Question - In January 2021, GameStop stock was trading at $43 per share. A $10-strike April put option was available in the market for 33 cents. Eight days later, GameStop stock was trading at $325 due to a short-squeeze, and the $10-strike April put option was trading at $1.55 in the market. Explain the market dynamics that made the put options more valuable when the stock price went up?

Reference no: EM132973812

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