When dividends increase with all else remaining the same which of the following

When dividends increase with all else remaining the

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16.When dividends increase with all else remaining the same, which of the following is true? A.Both calls and puts increase in value B.Both calls and puts decrease in value C.Calls increase in value while puts decrease in value D.Puts increase in value while calls decrease in value E.None of the above 17.When interest rates increase with all else remaining the same, which of the following is true?
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4 18.When the time to maturity increases with all else remaining the same, which of the following is true? 19.The price of a stock, which pays no dividends, is $30 and the strike price of a one year European call option on the stock is $25. The risk-free rate is 4% (continuously compounded). Which of the following is a lower bound for the option such that there are arbitrage opportunities if the price is below the lower bound and no arbitrage opportunities if it is above the lower bound? 20.A stock price (which pays no dividends) is $50 and the strike price of a two year European put option is $54. The risk-free rate is 3% (continuously compounded). Which of the following is a lower bound for the option such that there are arbitrage opportunities if the price is below the lower bound and no arbitrage opportunities if it is above the lower bound? A.$4.00 B.$3.86 C.$2.86 D.$0.86 E.None of the above 21.Which of the following is NOT true? (Assume that present values are calculated from the end of the life of the option to today.) 22.Which of the following best describes the intrinsic value of an option?
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