1. Increases or decreases in the riskiness of the future value of an asset have interesting and important effects on the value of call and put options written on that property today. To illustrate this, we consider a given property, which we can regard as a generic asset, which was sold for the price V0 at date t=0. At that time, a call and a put option were respectively written on the property, each with the same expiry date (t=1), exercise price F, and, from the perspective of date 0 , a random future price V~11 When the property was sold, its future value, V1, was known to be risky, with some probability that it could increase or decrease relative to its sale value. Assume, for simplicity, that the property could decrease in value to the single point V11 and that the property could alternatively increase to the value V12, which determines the values of the call option on the same date, respectively denoted by C11 and C12, and those analogous values of the put, respectively denoted by P11 and P122 Now consider an increase in the riskiness of that property, such that its possible future low and high values satisfy V~11