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Which of the following regarding the impact of volatility on option prices is MOST true: A . Increased volatility of the underlying security has a
Which of the following regarding the impact of volatility on option prices is MOST true:
A
Increased volatility of the underlying security has a negative effect on both call and put option premiums
B
Increased volatility of the underlying security has a negative effect on call option premiums, but a positive effect on put option premiums
C
Increased volatility of the underlying security has a negative effect on put option premiums, but a positive effect on call option premiums
D
Increased volatility of the underlying security has a positive effect on both call and put option premiums
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