If the risk of a stock increases, what is likely to happen to the price of call options on the stock? To the price of put options? Why?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter14: Security Structures And Determining Enterprise Values
Section14.4: Warrants And Options
Problem 3CC
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Options and Stock Risk If the risk of a stock increases, what is likely to happen to the price
of call options on the stock? To the price of put options? Why?

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