As the Volatility of a Share's Price Increases,the Value of Call

question 55

True/False

As the volatility of a share's price increases,the value of call and put options on the share decreases.

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Definitions:

Yankee Bond

A bond issued by a foreign entity in the United States, denominated in U.S. dollars.

Denominated

Refers to the currency in which a financial obligation or asset is expressed or required to be settled.

Australian Dollars

The currency of Australia, represented by the symbol AUD, and used as the legal tender in Australia and its territories.

United Kingdom Pounds

The official currency of the United Kingdom, known as the pound sterling, symbolized as GBP.