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:

Concern for Task

The focus and priority given to completing job-related activities efficiently and effectively.

Concern for People

An aspect of leadership or management that focuses on the welfare, needs, and wellbeing of employees.

Participatory Planning

A planning approach that involves all stakeholders in the decision-making process to ensure their needs and concerns are addressed.

Creativity

The ability to generate new and innovative ideas or solutions to problems.