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    Capital Markets Institutions
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    Exam 11: Introduction to Options Markets
  5. Question
    The Greater the Expected Volatility of the Price of the Underlying
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The Greater the Expected Volatility of the Price of the Underlying

Question 4

Question 4

True/False

The greater the expected volatility of the price of the underlying asset, the less an investor would be willing to pay for the option, and the more the option writer would demand for it.

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