Considering the Standard Deviation of Returns in Option Pricing

question 30

True/False

Considering the standard deviation of returns in option pricing,
1 + upside change = u = e^(σ
).

---

Definitions:

Zone Boundaries

Predetermined limits in a chart or graph that separate different levels of data for analysis or categorization purposes.

Lower Control Limit

In quality control charts, it is a threshold value below which a process is considered out of control and indicating a systemic decrease in quality.

Sample Proportions

It's the fraction or percentage of observations that fall into one category of a categorical variable in a sample of the population.

P Charts

Control charts used for monitoring the proportion of defective items in a process over time.