What Does Gamma Measure

question 12

Multiple Choice

What does gamma measure?

• A) The rate of change of delta with the asset price
• B) The rate of change of the portfolio value with the passage of time
• C) The sensitivity of a portfolio value to interest rate changes
• D) None of the above

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Definitions:

Key Concepts

Fundamental ideas or principles that are central to understanding a particular field or domain of knowledge.

Naturalistic-Observation Studies

Research methods where subjects are observed in their natural habitat without any manipulation by the observer.

Case-Study Method

A research approach that involves an in-depth investigation of a single subject or group to explore an underlying principle or theory.

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