If E Is the Base of Natural Logarithms; (σ)Is the Standard

question 50

Multiple Choice

If e is the base of natural logarithms; (σ) is the standard deviation of the continuously compounded annual returns on the asset; and h is the time to expiration, expressed as a fraction of a year, then the quantity (1 + upside change) is equal to

• A)e^[(σ)× SQRT(h)].
• B)e^[h × SQRT(σ)].
• C)(σ)× e^[SQRT(h)].
• D)1/(σ)× e^[SQRT(h)].

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Definitions:

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and expressive behavior.

Myelination

The process in which neurons are coated in a fatty substance, myelin, which contributes to faster neural communication.

Synaptic Pruning

The process by which synapses, neural connections that are seldom used, disappear.

White Matter

Myelinated brain tissue.