Which of These Statements Is Best

question 127

Multiple Choice

Which of these statements is best?

• A)Slack is the time an activity can be delayed without impacting the completion time of the project.
• B)The variance of the project completion time is equal to the sum of the variances of all the activities.
• C)In PERT, we assume that the project completion time can be modeled by the beta distribution.
• D)In PERT, the variance in completion time is equal to the variance of the most time-consuming activity on the critical path.

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Definitions:

Strike Price

The predetermined price at which the holder of an option can buy (call) or sell (put) the underlying asset.

Market Price

The current price at which an asset or service can be bought or sold.

Delta

In finance, delta represents the rate of change of an option's price with respect to the change in the underlying asset's price.

Gamma

A measure of the rate of change in an option's delta for a one-unit change in the price of the underlying asset, indicating the convexity of an option's value relative to the underlying.