Effects of Uncertainty on Future prices

Quantitative Finance Level 1

How does the price of a future change as volatility of the underlying increases?

Decreases. Since it is riskier, the risk is priced in. Increases. Since it is riskier, the risk is priced in. Increases. Since it is riskier, fewer people want to sell it. Decreases. Since it is riskier, fewer people want to buy it. Stays constant. Volatility has no effect.

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Effects of Uncertainty on Future prices

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100 Day Summer Challenge

Effects of Uncertainty on Future prices

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations, examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts, including olympiad champions, researchers, and professionals.

Master advanced concepts through explanations,
examples, and problems from the community.

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Master advanced concepts through explanations,
examples, and problems from the community.

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.