Chapter 03 · Section 3.1

Volatility increase

If the volatility of the underlying asset increases:

a) the higher the put premium;
• b) the higher the call premium;
  No. That is correct, but I also need the answer for the put.
  c) the lower the put premium;
  d) the lower the call premium.
  e) a and b
  f) a and d

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