Option traders sometimes refer to deep-out-of-the-money options as being options on volatility. Why do you think they

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Option traders sometimes refer to deep-out-of-the-money options as being options on volatility. Why do you think they do this?

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Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Question Posted: Jan 20, 2016 09:00 AM

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Option traders sometimes refer to deep-out-of-the-money options as being options on volatility. Why do you think they

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A deepoutofthemoney option has a low value Decreases in its volatility re...View the full answer

Fundamentals of Futures and Options Markets

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