(Answered) A european put option is in the money the price of the

Management Studies

A European put option is "in the money". The price of the underlying security now rises.

What happens to the premium on the put?

What happens to the premium on the corresponding call option (same exercise price and date of expiration)?

Compare the (absolute) size of the changes in the two premiums (the one on the put and the one on the call). Explain.

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