When is the effect of volatility on option premiums the highest? Option: When the option is in the money., When the option is out of the money., When there are few days left for expiry., When there are more days left for expiry.

When is the effect of volatility on option premiums the highest?

What is the relationship between volatility and option premiums?

What is the primary factor influencing the choice of option strike when buying options?

What is the relationship between time to expiry and the time value component of an option's premium?

How does an increase in volatility affect a Call Ratio Back Spread with very few days to expiry?

How does an increase in volatility affect a Call Ratio Back Spread with ample time to expiry?