Stock Price Volatility Is Beneficial to Option Holders

question 44

True/False

Stock price volatility is beneficial to option holders.

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Definitions:

Maximum Gain

The highest possible profit or advantage that can be achieved in a particular situation.

Nash Equilibrium

A situation in strategic interactions where each participant's choice is optimal, considering the decisions of others.

Firm

An organization engaged in commercial, industrial, or professional activities, typically aimed at generating profits.

Optimal

The best or most favorable point, level, or condition, especially under specific constraints or conditions.