n NISM Certifications
XIII NISM Series XIII
Medium

The price of Stock P and the price of Stock Q is the same at Rs. 500. If everything else is constant and if Stock P is more volatile than Stock Q, the call option on ______ will be priced higher.

Practice question from NISM Series XIII for SIF - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Stock P

    Correct answer

  2. B

    Stock Q

  3. C

    Both calls will be equally priced

  4. D

    Inadequate information

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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