The premium on an existing put option should ____ when there is an increase in the volatility of the underlying stock.

Name: The premium on an existing put option should ____ when there is an increase in the volatility of the underlying stock.
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The premium on a put option increases with an increase in the volatility of the underlying stock because higher volatility increases the probability of the option ending in the money, thus making it more valuable.

The Premium on an Existing Put Option Should ____ When