Chapter 06 · Section 6.1

Increase in volatility

An increase in volatility will:

a) decrease the value of your put and increase your return.
b) have no effect on the value of your put.
• c) increase the value of your put and increase your return.
  No. This would be true if you were the holder of the option contract.
  d) increase the value of your put and decrease your return.
  e) decrease the value of your put and decrease your return.