Question: Explain why both put and call options are worth more if the stock return standard deviation is higher but put and call options are affected
Explain why both put and call options are worth more if the stock return standard deviation is higher but put and call options are affected oppositely by the stock price.
Step by Step Solution
★★★★★
3.39 Rating (143 Votes )
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
The value of both put and call options is influenced by the stocks return standard deviation but their reactions to changes in stock price can be oppo... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
