Question: If a stock's volatility increases with all else remaining the same, which of the following is true of options on that stock? A. A call
If a stock's volatility increases with all else remaining the same, which of the following is true of options on that stock? A. A call option will decrease in value, but a put option will increase in value B. A call option will increase in value, but a put option will decrease in value C. Both options will decrease in value D. Both options will increase in value QUESTION 7 Under what circumstances is it optimal to exercise an American call option on a non-dividend-paying stock before the expirati A. If you intend to hold the stock after exercising the option B. If you intend to sell the stock after exercising the option C. If you believe the stock is overpriced D. It is never optimal to exercise such an option carly
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