Options become more valuable the greater is the volatility of the underlying assets because: A Hedging option
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Question:
Options become more valuable the greater is the volatility of the underlying assets because:
A Hedging option positions becomes more profitable.
B The upside from holding options improves and the downside does not get worse when outcomes are more spread out.
C None of the reasons listed.
D Investors in options tend to be risk neutral.
E I do not wish to answer this question.
F Hedging option positions becomes cheaper.
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Managing Supply Chain and Operations An Integrative Approach
ISBN: 978-0132832403
1st edition
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
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