As the volatility of a stock's price increases, the value of call options ________ and the value of put options ________.

Name: As the volatility of a stock's price increases, the value of call options ________ and the value of put options ________.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

As the volatility of a stock's price increases, the potential for both gains and losses is amplified, making both call and put options more valuable due to the higher probability of significant price movements.

As the Volatility of a Stock's Price Increases, the Value