The Value of an American Call Option Is Increased When

question 207

True/False

The value of an American call option is increased when the variance of the underlying asset increases.

---

Definitions:

Haploid

Having one of each type of chromosome characteristic of the species.

Diploid

Referring to a cell that contains two complete sets of chromosomes, one from each parent, typical of the body's somatic cells.

Zygote

A zygote is the initial cell formed when a new organism is produced by sexual reproduction, following the fusion of male and female gametes.

Fetus

Developing human from about 9 weeks until birth.