It has been shown empirically that stock volatility decreases as a stock”s price increases….

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August 7, 2017
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It has been shown empirically that stock volatility decreases as a stock”s price increases….

It has been shown empirically that stock volatility decreases as a stock”s price increases. Comment on how this phenomenon would tend to bias the call and put option values generated by the Black- Scholes model, which assumes that volatility remains constant.


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