Which of the following is true?
A) As volatility increases, call values increase and put values decrease.
B) As volatility increases, call values decrease and put values increase.
C) As volatility increases, the values of both call and put options decrease.
D) As volatility increases, the values of both call and put options increase.
E) Call and put values are independent of volatility.
Correct Answer:
Verified
Q51: The sensitivity of option value to change
Q52: The standard deviation of continuously compounded
Q53: A long put on pound sterling with
Q54: The _ is the number of options
Q55: Consider a "C$ Dec 7000 put" selling
Q57: An option writer _ the exercise price
Q58: Which of the following is true?
A) Both
Q59: A long put option to sell pounds
Q60: Consider a "SFr Dec 7000 put" selling
Q61: The current spot rate of the Hong
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents