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    Exam 24: Hedging with Financial Derivatives
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    An Increase in the Volatility of the Underlying Asset,all Other
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An Increase in the Volatility of the Underlying Asset,all Other

Question 74

Question 74

Multiple Choice

An increase in the volatility of the underlying asset,all other things held constant,will ________ the option premium.


A) increase
B) decrease
C) not affect
D) Not enough information is given.

Correct Answer:

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