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Which of the Following Is True

Question 9

Multiple Choice

Which of the following is true


A) All option implied volatilities tend to move by the same about from one day to the next
B) The implied volatilities of long-dated options tend to move by more than the implied volatilities of short-dated options
C) The implied volatilities of short-dated options tend to move by more than the implied volatilities of long-dated options
D) Sometimes C is true and sometimes D is true

Correct Answer:

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