If the Volatility (Variance) of the Underlying Stock Increases Then

question 66

Multiple Choice

If the volatility (variance) of the underlying stock increases then the: [Assume everything else remaining the same]

• A) Value of the put option increases and that of the call option decreases
• B) Value of the put option decreases and that of the call option increases
• C) Value of both the put option and the call option increases
• D) Value of both the put option and the call option decreases

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