Options written on volatile assets are worth more than options written on safer assets.

Name: Options written on volatile assets are worth more than options written on safer assets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Options written on volatile assets have a higher chance of moving in favor of the buyer, leading to a potentially larger payout. This higher potential payout increases the value of the option, making it worth more than options written on safer assets.

Options Written on Volatile Assets Are Worth More Than Options