Chapter 07 · Section 7.1

Long Strangle Question 4

An increase in volatility will:

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