The Value of an Option ________ with the Volatility of the Underlying

question 3

Multiple Choice

The value of an option ________ with the volatility of the underlying stock.

• A) increases
• B) decreases
• C) unchanged
• D) cannot say for sure

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Definitions:

Nation's Growing Deficit

Describes the increasing situation where a nation's expenditures exceed its revenues, leading to a situation of national debt.

Sexual Harassment

Unwanted or inappropriate sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature that affects an individual's employment, interferes with work performance, or creates a hostile work environment.

Anita Hill

Anita Hill is an American attorney and academic who became nationally known for her testimony against Clarence Thomas during his Supreme Court nomination hearings in 1991, bringing sexual harassment in the workplace to public attention.

Clarence Thomas

An Associate Justice of the U.S. Supreme Court, known for his conservative views, appointed in 1991.