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Holding everything else equal, the increase in the volatility (variance) of the underlying stock will cause  A.value of a put option decreases and that of a call option increases. B.value of both a put option and a call option increase. C.value of a put option increases and that of a call option decreases. D.value of both a put option and a call option decreas

Holding everything else equal, the increase in the volatility (variance) of the underlying stock will cause  A.value of a put option decreases and that of a call option increases. B.value of both a put option and a call option increase. C.value of a put option increases and that of a call option decreases. D.value of both a put option and a call option decreas

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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8. Holding everything else equal, the increase in the volatility (variance) of the underlying stock will cause 

A.value of a put option decreases and that of a call option increases.
B.value of both a put option and a call option increase.
C.value of a put option increases and that of a call option decreases.
D.value of both a put option and a call option decrease.
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