Which of the Following Is True

question 6

Multiple Choice

Which of the following is true?

• A) The delta of a European put equals minus the delta of a European call
• B) The delta of a European put equals the delta of a European call
• C) The gamma of a European put equals minus the gamma of a European call
• D) The gamma of a European put equals the gamma of a European call

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Definitions:

Channel

In communication, a medium through which a message is transmitted from a sender to a receiver.

Group Polarization

The phenomenon whereby a group's prevailing opinions or decisions become more extreme than the individual initial inclinations after group discussion.

Risky Shift

The phenomenon where groups make riskier decisions collectively than individuals would when making decisions alone.

Social Constructionism

The theory that social phenomena develop in social contexts as a result of human interpretation, interaction, and negotiation rather than inherent traits.