menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Financial Markets and Institutions Study Set 1
  4. Exam
    Exam 24: Hedging with Financial Derivatives
  5. Question
    Option Premiums Fall as the Volatility of the Underlying Asset
Solved

Option Premiums Fall as the Volatility of the Underlying Asset

Question 78

Question 78

True/False

Option premiums fall as the volatility of the underlying asset falls.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q73: Using options to control interest-rate risk reduces

Q74: An increase in the volatility of the

Q75: Explain the difference between a macro hedge

Q76: Explain how a swap could be used

Q77: A short contract obligates the holder to

Q79: If you sell a short contract on

Q80: Currency swaps involve the exchange of a

Q81: All other things held constant,premiums on both

Q82: A forward contract is more flexible than

Q83: Financial derivatives include _.<br>A) stocks<br>B) bonds<br>C) forward

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines