If the Volatility of the Underlying Asset Decreases, Then The

question 39

Multiple Choice

If the volatility of the underlying asset decreases, then the:

• A) value of the put option will increase, but the value of the call option will decrease.
• B) value of the put option will decrease, but the value of the call option will increase.
• C) value of both the put and call option will increase.
• D) value of both the put and call option will decrease.
• E) value of both the put and call option will remain the same.

---

Definitions:

Communication

Communication is the process of transferring information from one person or group to another through verbal, non-verbal, written, or digital means.

Explorative

Characterized by a desire or tendency to investigate and learn about something new.

Rhythmic Cry

refers to a patterned, predictable crying sound in infants, which can indicate distress or different emotional states.

Hunger

A physical sensation or condition resulting from the need for food intake.