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    Derivatives and Risk Management Study Set 2
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    Exam 3: Principles of Option Pricing
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    High Volatility Is Bad for Option Holders Because It Increases
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High Volatility Is Bad for Option Holders Because It Increases

Question 48

Question 48

True/False

High volatility is bad for option holders because it increases the probability that the option will expire out-of-the-money.

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