Option values are always more volatile than the asset values on which they are based.

Name: Option values are always more volatile than the asset values on which they are based.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Options derive their value from an underlying asset or security, and therefore, their value is more likely to fluctuate based on changes in the price of the underlying asset, market conditions, and other factors. This makes option values more volatile than the asset values on which they are based.

Option Values Are Always More Volatile Than the Asset Values