Question: Repeat the analysis of problem 14.17 assuming that the volatility of the stock's return is 40%. Intuitively, would you expect this to cause the call

Repeat the analysis of problem 14.17 assuming that the volatility of the stock's return is 40%. Intuitively, would you expect this to cause the call price to rise or fall? By how much does the call price change?

Data from problem 14.17

A stock trades for $45 per share. A call option on that stock has a strike price of $50 and an expiration date one year in the future.

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