Investor a Bought a Call Option, and Investor B Bought

question 72

Multiple Choice

Investor A bought a call option, and investor B bought a put option. All else equal, if the underlying stock price volatility increases, the value of investor A's position will ________ and the value of investor B's position will ________.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

EEOC

The Equal Employment Opportunity Commission, a federal agency charged with enforcing laws prohibiting employment discrimination.

Private Plaintiff

An individual or privately held organization that brings a lawsuit to court.

Quid Pro Quo Sexual Harassment

A type of sexual harassment that occurs when submission to or rejection of sexual advances or conduct is used as the basis for decisions affecting an individual's employment.

Employee Evaluation

A review and assessment of a worker's performance, typically conducted by their supervisor or employer.