The Values of a Stock Price at the End of the Second

question 9

Multiple Choice

The values of a stock price at the end of the second time step are $80,$100,$125.The corresponding values of an option are $0,$5,and $20 respectively.What is an estimate of gamma?

• A) 0.136
• B) 0.146
• C) 0.156
• D) 0.166

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Definitions:

Revenue Variance

The gap between what was expected in revenue and what was actually earned.

Budgeting Formulas

Mathematical expressions used to forecast and plan financial outcomes based on various inputs and assumptions.

Actual Level

The current, real-world status or extent of an activity or performance.

Revenue Variance

The difference between actual revenue and budgeted or forecasted revenue, indicating a company's financial performance.