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Corporate Finance · End Term · 22 Dec 2024 · September 2024 term · Set QDB3

Question 22: When volatility increases with all else remaining the sa…

Question 22

+3 marksOne correct option

When volatility increases with all else remaining the same, which of the following is true?

  1. A

    Both calls and puts increase in value

  2. B

    Both calls and puts decrease in value

  3. C

    Calls increase in value while puts decrease in value

  4. D

    Puts increase in value while calls decrease in value

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Correct answer

  • A

    Both calls and puts increase in value

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Question 22 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 22 Dec 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB3 22 Dec 2024). It carries 3 marks.

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