An Increase in Uncertainty Results in a Higher Implied Standard

question 32

True/False

An increase in uncertainty results in a higher implied standard deviation for the stock, which means that the writer of an option requires a higher premium to compensate for the anticipated increase in the stock's volatility. ​

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Definitions:

Spermarche

The onset of the ability to ejaculate sperm in boys, marking a significant milestone in male puberty.

Secondary Sex Characteristics

Secondary sex characteristics are physical traits that emerge during puberty but are not directly involved in reproduction, such as breast development in females and facial hair in males.

Gender Identity

An individual's personal sense of their gender, which may or may not correspond to the sex assigned at birth.

Androgyny

The blending or presence of both masculine and feminine characteristics in an individual's personality, behavior, or physical appearance.