a. The value of your portfolio will fall if the implied volatility of IBM suddenly increases.
b. The value of your portfolio will increase if the implied volatility of IBM suddenly increases.
c. The value of your portfolio will remain the same if the implied volatility of IBM suddenly increases.
d. Within the Black and Sholes framework, the portfolio value will fall when the IBM stock price goes up.
e. Within the Black and Sholes framework, the portfolio value will fall when the IBM stock price goes down.
f. None of the above is correct. Get Finance homework help today
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