Chapter 06 · Section 6.1
Increase in volatility
An increase in volatility will:
d) increase the value of your put and decrease your return.
No. Since you are the option holder, any increase to the value of the put will increase your return.
e) decrease the value of your put and decrease your return.
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.