Predict and explain the effect on the option’s premium from the following: for a call option,...

Predict and explain the effect on the option’s premium from the following:

for a call option, a reduction in variance of the underlying security;
for a put option, a reduction in variance of the underlying security;
for a call option, a lower exercise price;
for a put option, a lower exercise price.

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Proper explanation is provided.

jeff jeffy answered 1 year ago

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