Considering the standard deviation of returns in option pricing: 1 + upside change = u = e^(σ)(√h).

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This formula is known as the Black-Scholes model and it is widely used in option pricing. The standard deviation of returns is represented by σ and it is used to calculate the annualized volatility of the underlying asset. The formula tells us that a 1 standard deviation change in the price of the underlying asset will result in an upside change of e^(σ)(√h) in the value of a call option.

Considering the Standard Deviation of Returns in Option Pricing: 1