Chapter 06 · Section 6.1
Changes in Volatility
An increase in volatility will:
d) increase the value of your call and decrease your return.
No. Since you are holding the option, an increase in the call's value will increase your return.
e) decrease the value of your call and decrease your return.
a) decrease the value of your call and increase your return.
b) have no effect on the value of your call.
c) increase the value of your call and increase your return.