What Does the Following MATLAB Function Do? Log2(x)

question 4

Multiple Choice

What does the following MATLAB function do? log2(x)

• A)returns the value of base-2 logarithm of x.
• B)returns the value of base-10 logarithm of 2 and assigns it to x.
• C)returns the value of common log of 2x.
• D)returns the value of natural logarithm of 2 and assigns it to x.

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Definitions:

Specified Period

A particular duration or timeframe set out in a financial agreement or investment term.

Strike Price

The fixed price at which the owner of an option can purchase (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Risk-Free Rate

The rate of return on an investment with zero risk, typically associated with government bonds, serving as a baseline for evaluating investment risk.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.