The Values of a Stock Price at the End of the Second

question 9

Multiple Choice

The values of a stock price at the end of the second time step are $80,$100,$125.The corresponding values of an option are $0,$5,and $20 respectively.What is an estimate of gamma?

• A) 0.136
• B) 0.146
• C) 0.156
• D) 0.166

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Definitions:

Libertarian

A political ideology favoring minimal state intervention in the personal and economic affairs of individuals, emphasizing freedom and voluntary association.

Egalitarian

Based on the principle that all people are equal and deserve equal rights and opportunities.

Equal Share

A division of assets, resources, or responsibilities among parties where each receives an identical portion or amount.

Distributive Justice

The ethical principle concerned with the fair allocation of resources among members of a community.