The Value of Both Call and Put Options Increase as the Variability

question 12

True/False

The value of both call and put options increase as the variability of the stock price increases.

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Definitions:

Second

A unit of time equal to one sixtieth of a minute, used as a standard measure of time.

Contracts

are legally binding agreements between two or more parties that are enforceable by law.

Promissory Estoppel

A legal principle preventing a party from withdrawing a promise made to a second party if the second party has reasonably relied on that promise to their detriment.

Incarceration

The act of confining someone in a prison or similar facility.