Multiple Choice
Which of the following is FALSE?
A) Options are always more volatile than the assets on which they are based.
B) Returns on options are inherently non-normal.
C) Returns on options are asymmetric.
D) The volatility of an option changes with changes in the value of the underlying asset.
E) Option pricing methods discount option payoffs at a risk-adjusted discount rate.
Correct Answer:
Verified
Correct Answer:
Verified
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