Question
The effect of an increase in volatility on European put will lead to a/an _____________ in premium and the effect of a decrease in spot
The effect of an increase in volatility on European put will lead to a/an _____________ in premium and the effect of a decrease in spot price on European call will lead to a/an ______________ in premium.
a.
decrease; increase
b.
decrease; decrease
c.
increase; increase
d.
increase; decrease
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Financial Institutions Management
Authors: Anthony Saunders
3rd Edition
007303259X, 978-0073032597
