________ Can Be Used to Check Whether Simultaneous Changes in RHS

question 15

Multiple Choice

________ can be used to check whether simultaneous changes in RHS or OFC values can be analyzed by using the current sensitivity report.

• A)100% rule
• B)Pricing out
• C)Trial-and-error
• D)Graphing
• E)none of the above

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Definitions:

Digital Option

A financial instrument that provides a fixed return if the market price is above (for a call) or below (for a put) a certain level at expiration.

Bull Money Spread

A type of options strategy that is used when an investor expects a moderate rise in the price of the underlying asset.

Calls

Calls are options contracts giving the holder the right, but not the obligation, to buy a specified amount of an underlying security at a predetermined price within a specified time frame.

Option Quotes

Information about the price of an option contract, including its bid and ask prices, and sometimes the volume and open interest.