Relative to the underlying stock, a call option always has:
A. A higher beta and a higher standard deviation of return
B. A lower beta and a higher standard deviation of return
C. A higher beta and a lower standard deviation of return
D. A lower beta and a lower standard deviation of return
Answer:A
Relative to the underlying stock, a call option always has:
A. A higher beta and a higher standard deviation of return B. A lower beta and a higher standard deviation of return C. A higher beta and a lower standard deviation of return D. A lower beta and a lower standard deviation of return