A Decrease in the Standard Deviation of the Return on the Stock

question 356

True/False

A decrease in the standard deviation of the return on the stock will increase the value of a call option.

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Definitions:

Acceptance

In contract law, the agreement by a party to the terms of an offer, forming a contract.

Capacity

In legal terms, the ability to understand the nature and effects of one's actions, specifically in forming contracts or executing wills.

Assignable

Refers to the capability of transferring rights or interests in a contract or financial instrument to another party.

Revoked

The act of officially canceling or rescinding a legal right, license, permission, or privilege.