Volatility Risk Is

question 44

Multiple Choice

Volatility risk is

• A) the volatility level for the stock that the option price implies.
• B) the risk incurred from unpredictable changes in volatility.
• 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:

Truth-functional Compound

A logical statement whose truth value depends solely on the truth values of its components.

Quantifier

A symbolic expression in logic that specifies the quantity of specimens in the domain of discourse that satisfy an open formula.

Atomic Open Sentence

A simple sentence in symbolic logic that contains variables but does not contain any logical connectives and cannot be further divided into simpler sentences.

Compound

A thing that is composed of two or more separate elements.