- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 8. Pricing and Valuation of Options
- Subject 3. Factors Affecting Option Value
CFA Practice Question
Higher volatility increases ______ option prices.
II. put
I. call
II. put
Correct Answer: I and II
Higher volatility increases possible upside values and increases possible downside values of the underlying.
User Contributed Comments 0
You need to log in first to add your comment.