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.

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Definitions:

Ionic Frieze

An Ionic frieze is a continuous horizontal band of sculptured or painted decoration found on the entablature of buildings in the Ionic order of classical architecture.

Parthenon

A former temple on the Athenian Acropolis, Greece, dedicated to the goddess Athena, exemplifying classical Greek architecture and art.

Panathenaic Procession

An ancient Athenian festival celebrating the birthday of the goddess Athena, featuring a grand procession to the Acropolis.

Contrapposto

An art term that describes a human figure standing with most of its weight on one foot so that its shoulders and arms twist off-axis from the hips and legs, giving the body a more dynamic and relaxed appearance.