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:

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Yellow SRS Connector

A specific color-coded connector used in vehicle Supplemental Restraint Systems (SRS), such as airbag systems, for diagnostics and repairs.

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