标题: upside effect of volatility [打印本页] 作者: MeteorShower 时间: 2011-7-13 16:32 标题: upside effect of volatility
The upside effect of volatility hurts:
I. calls. II. puts.
A. I only.
B. II only.
C. both I and II.
D. none of them.
I got tricked again...作者: kmf229 时间: 2011-7-13 16:32
Puts only right?
UP&Down volitility helps both. If you take out the Good volitility for a put (The downside) you're left with the bad.作者: farrukhsadiq 时间: 2011-7-13 16:32
D'Artagnan Wrote:
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> The upside effect of volatility hurts:
>
> I. calls. II. puts.
>
> A. I only.
> B. II only.
> C. both I and II.
> D. none of them.
>
> I got tricked again...
I'm not sure where you got this question. It looks like a FINRA licensing question.
Volatility hurts the writer of a covered call because they are betting the price will not move and are hoping to pocket the premium.
If you are the holder of the call you are buying them as a play on volatility upside volatility will help you. You could find yourself in the money.
Upside volatility will hurt the holder of a put, but again will benefit the seller.
What's the answer?作者: Benjiko 时间: 2011-7-13 16:32
I assume they are viewing from the holder of the option. If so that makes sense.作者: Mechanic 时间: 2011-7-13 16:32
I think volatality can only help options and can never hurt options. The biggest loss is that options become worthless. So answer is D.作者: Bluetick1010 时间: 2011-7-13 16:32
girl you gonna think, girl you think, girl you think I invented dividends, interest, volatility, underlying price,time to expiration, strike price.
