All Else the Same, an Increase in the Volatility of the Underlying

question 65

Multiple Choice

All else the same, an increase in the volatility of the underlying stock will __________ the price of a call option and __________ the price of a put option.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease; increase
• E) not affect; not affect

---

Definitions:

Condenser

A device used to condense a gaseous substance into a liquid or solid state, typically by cooling it.

Project An Image

The act of conveying a particular perception or representation of oneself to others.

Focus Controls

Elements in software or optical devices designed to adjust the clarity and sharpness of an image or to direct attention to specific tasks.

Clear View

A term denoting an unobstructed and clear line of sight or understanding.