The Price of a Call Option Is Often More Volatile

question 82

True/False

The price of a call option is often more volatile than the price of the underlying stock.

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Definitions:

Memory Fades

The gradual loss of the ability to recall information or experiences over time.

Lack of Use

A situation where a product, skill, or service is not utilized, potentially leading to its degradation or obsolescence.

Cue-dependent

Refers to the phenomenon where recall of information is improved when retrieval conditions are similar to the conditions present during encoding.

Maintenance Rehearsal

A cognitive process involving the repetition of information to keep it within working memory or to encode it for storage in long-term memory.