The Rho of an Option Is

question 352

Multiple Choice

The rho of an option is:

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

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Definitions:

Subjective Measures

Assessments based on personal opinions, interpretations, or perspectives rather than objective criteria.

Superiors

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Effectiveness

The measure of effectiveness in realizing an intended or desired outcome.

Leadership Theories

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