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If the Volatility of an Option Increases

Question 43

Multiple Choice

If the volatility of an option increases:


A) the value of a call option will increase,but a put option will decrease.
B) the value of a call option will decrease,but a put option will increase.
C) the value of a call option will decrease,and a put option will decrease.
D) the value of a call option will increase,and a put option will increase.

Correct Answer:

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