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:

High Conscientiousness

An attribute demonstrating a person's capacity for meticulous organization, dependability, and a serious approach to duty.

Personality Disorder

A category of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, deviating from the cultural norm.

Pervasive

Spreading widely throughout an area or a group of people, often with negative connotations.

Occasional Problems

Issues or difficulties that arise infrequently and are not of a continuous nature.