The Rho of an Option Is Defined As

question 8

Multiple Choice

The Rho of an option is defined as:

• A) expected change in the option premium for a small change in time to expiration.
• B) expected change in the option premium for a small change in volatility.
• C) expected change in the option premium for a small change in the foreign interest rate.
• D) expected change in the option premium for a small change in the domestic interest rate.

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Definitions:

Disproportionate

Lacking in proportion, balance, or equivalence, often used to describe uneven or unfair distribution of resources, representation, or opportunities.

Establishment

An influential social or political group or institution, often considered part of the mainstream power structure, holding significant sway in societal decisions and norms.

Labor

The effort by humans to produce goods or services in exchange for wages or other forms of compensation.

Apache Resistance

The series of conflicts and battles between Apache tribes and European settlers and later the United States government, as part of the Native American resistance to colonization and settlement.