Chapter 06 · Section 6.1
Increase in volatility
An increase in volatility will:
c) increase the value of your call and increase your return.
No. The value of the call will increase. Since you have sold the call, your return will decrease.
d) increase the value of your call and decrease 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.