Consider a European call and a European put with the same strike price and time to maturity. Show that they change in value by the same amount when the volatility increases from a level 1 to a new level 2 within a short period of time. (Hint: Use putcall parity.) V

Chapter 9 : Hypothesis T ests about the Mean and Proportion Explain Important Most Important Techniques for Hypothesis Testing The techniques for hypothesis testing depend on the type of outcome variable being analyzed (continuous, dichotomous, discrete) the number of comparison groups in the investigation whether the comparison groups are independent...