Why are options more valuable when there is increased uncertainty about the value of the stock?

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Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

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Question Posted: Mar 31, 2017 02:29 PM

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Why are options more valuable when there is increased uncertainty about the value of the stock?

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To conclude we can say that the value of an opti...View the full answer

Fundamentals of Corporate Finance

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