What happens to put option price when volatility increases

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Using your Put-Call Parity,r model, answer the following questions:

1. What happens to the put option price when volatility {sigma} increases (i.e., does it go up, down, or remain constant?)

2. What happens to the put option price when the risk-free interest rate (r) increases (i.e., does it go up, done], or remain constant?)

3. What happens to the put option price when the strike price (X) increases [i.e., does it go up, down, or remain constant?)

Reference no: EM133305702

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