The Elasticity of an Option Is

question 88

Multiple Choice

The elasticity of an option is

• A) the volatility level for the stock that the option price implies.
• B) the continued updating of the hedge ratio as time passes.
• C) the percentage change in the stock call-option price divided by the percentage change in the stock price.
• D) the sensitivity of the delta to the stock price.

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Definitions:

Electroshock Treatment

Known as ECT or electroconvulsive therapy, it is a mental health treatment method where electrically induced seizures are utilized to alleviate symptoms of psychiatric conditions.

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A psychological disorder identified by a constant state of low mood or a disinterest in pursuits, leading to considerable disruption in day-to-day activities.

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