The Gamma of an Option Is

question 97

Multiple Choice

The gamma of an option is:

• A) The sensitivity of the option value to changes in volatility
• B) The sensitivity of the option value to changes in the time to expiry
• C) The sensitivity of the delta to changes in the value of the underlying
• D) The sensitivity of the option value to changes in the price of the underlying

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Definitions:

Effective Followers

Individuals who actively support and contribute to their leader’s vision while demonstrating critical thinking and initiative.

Transparency

The practice of being open, honest, and straightforward about various company operations and decisions, fostering trust and accountability.

Strategy Developer

An individual or entity responsible for creating and implementing plans or strategies to achieve specific goals or objectives.

Framing Financial Policies

The process of developing and establishing guidelines or principles for managing an organization's financial resources.