High Volatility Is Bad for Option Holders Because It Increases

question 48

True/False

High volatility is bad for option holders because it increases the probability that the option will expire out-of-the-money.

---

Definitions:

Device Driver

A software component that allows the operating system and other software to communicate with hardware peripherals.

Headset

A hardware device that combines a microphone and a pair of headphones, often used for communication or listening to audio privately.

Machine Cycle

A sequence of operations performed by a computer's CPU to execute a single instruction.

Processing Instructions

Directives or commands within software or programming that guide the handling and manipulation of data.