Chapter 03 · Section 3.1

Expiration Profile

You bought this option when volatility was at 25%.

If volatility increases by 10%, how will that change the call's expiration profile?

a) Shift to the left
b) Shift to the right
c) Shift up
• d) Would not change the profile
  Yes. An increase in volatility will not change the expiration profile of an option. It will however, increase the value of a long option before expiration. Continue

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