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All else equal, if the volatility of the underlying stock increases, then the A. value of both a put option and a call option increase.
All else equal, if the volatility of the underlying stock increases, then the
A.
value of both a put option and a call option increase.
B.
value of a put option decreases and that of a call option increases.
C.
value of a put option increases and that of a call option decreases.
D.
value of both a put option and a call option decrease.
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Public Finance
Authors: Steven G. Medema, Carl Sumner Shoup
1st Edition
0202307859, 978-0202307855
