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Which of the following is/are true on option on a stock? 1. When volatility increase, put will increase in value but call may or may
Which of the following is/are true on option on a stock? 1. When volatility increase, put will increase in value but call may or may not increase its value because of it is less certain that price will go up. 2. A longer expiry call will always worth more than a shorter expiry call assuming everything else is the same 3. American put will always equal or worth more than European put assuming everything else is the same A. Only 1 B. Only 2 C. 1 and 2 are true D. 1 and 3 are true E. 2 and 3 are true F. All of the above
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