When Volatility Increases with All Else Remaining the Same,which of the Following

question 9

Multiple Choice

When volatility increases with all else remaining the same,which of the following is true?

• A) Both calls and puts increase in value
• B) Both calls and puts decrease in value
• C) Calls increase in value while puts decrease in value
• D) Puts increase in value while calls decrease in value

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Definitions:

External Ear

The outer portion of the ear, consisting of the auricle and the ear canal.

Middle Ear

The part of the ear located between the eardrum and the oval window, containing the three small bones that transmit sound vibrations.

Deafness

The condition of lacking the power of hearing or having impaired hearing.

Auricle

The outer part of the ear; also known as the pinna.