The Phi of an Option Is Defined As

question 17

Multiple Choice

The Phi 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:

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Type Size

The measure of the height of characters in printing, typically expressed in points, influencing readability.

Social Science

A field of study that examines society and human behavior through methods such as observation, interviews, and surveys.