All Other Factors Equal, the ________ the Expected Volatility (As

Multiple Choice

All other factors equal, the ________ the expected volatility (as measured by ________) of the price of the underlying asset, the more an investor would be willing to pay for the option, and the more an option writer would demand for it.

A) lower; the variance
B) lower; the standard deviation
C) greater; beta
D) greater; the standard deviation