Question
A firm has both call options and put options traded on its stock. If volatility of the firm's stock price increases, the value of its
A firm has both call options and put options traded on its stock. If volatility of the firm's stock price increases, the value of its call options will ___________ and the value of its put options will _________________.
decrease; increase
increase; decrease
decrease; decrease
increase; increase
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
5thEdition
0073382345, 9780073382340
