What effect does volatility of the underlying asset have on the price of the option?

What will be an ideal response?


Answer: The higher the volatility of the underlying asset, the higher the price of the option.

Business

You might also like to view...

Which of the following correctly pairs the type of risk with its description?

A. contractual risks: the risk of monetary loss B. commercial risks: the risk of personnel leaving the project C. financial risks: the risk of the market not accepting a product D. technical risks: the risk posed by new technologies

Business

In order to better understand the terms of the insurance policy, I requested a written copy

What will be an ideal response?

Business

As the "conscience" of an organization, public relations practitioners should ________

A) advocate to divulge everything about the organizations for which they work B) always remember to ask, "Are we doing the right thing?" C) advocate to impose rigorous regulations against corporate criminals D) ignore criticism that business ethics are non-existent

Business

Strong verbs have more ____________ in a sentence

a. presence b. authority c. consequence d. impact

Business