Chapter 07 · Section 7.1

Short Call Question 4

An increase in volatility will:

• a) decrease the value of your call and increase your return.
  No.
  b) have no effect on the value of your call.
  c) increase the value of your call and increase your return.
  d) increase the value of your call and decrease your return.
  e) decrease the value of your call and decrease your return.