Which one of the following four statements does identify correctly the relationship between the value of an option and perceived exchange rate volatility?

Which one of the following four statements does identify correctly the relationship between the value of an option and perceived exchange rate volatility?
A . With increases in perceived future foreign exchange volatility, the value of all foreign exchange
B . As the perceived future foreign exchange volatility decreases, the value of all options increases.
C . As the perceived future foreign exchange volatility increases, the value of all options increases.
D . Option values can only change due to the factors related to the demand for specific options

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Answer: C