passage in book: "the cheaper the stock relative to intrinsic value, the cheaper the options should be".

is it not so, that the stock that is cheaper relative to intrinsic value, would push up perceived volatility, hence pushing up option value? thanks

Question

passage in book: "the cheaper the stock relative to intrinsic value, the cheaper the options should be".

is it not so, that the stock that is cheaper relative to intrinsic value, would push up perceived volatility, hence pushing up option value? thanks

anonymous · Answer

say's an economist said "supply creats it's onw demand"....