Why do options usually increase in value with volatility? What essential feature of the payoff diagram leads

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Why do options usually increase in value with volatility? What essential feature of the payoff diagram leads to this result?

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Derivatives Principles And Practice

ISBN: 9780078034732

2nd Edition

Authors: Rangarajan Sundaram

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Question Posted: Jan 10, 2024 01:00 AM

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Why do options usually increase in value with volatility? What essential feature of the payoff diagram leads

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Option values usually increase with volatility because of the asymmetry of the payoff func...View the full answer

Derivatives Principles And Practice

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