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a) Price of the call option will increase and implied volatility will Decrease b) Price of the call option will Decrease and implied volatility will Decrease c) Price of the call option will increase and implied volatility will Increase d) Price of the call option will Decrease and implied volatility will Increase
its answer A.. if you look at component of option formula ..
c) Price of the call option will increase and implied volatility will Increase
once the demands of the stock increases also the price will increase.
Option C which is opposite to the put option.
a) Price of the call option will lncrease and implied volatility will Decrease