The Lambda of an Option Is Defined As

question 3

Multiple Choice

The Lambda of an option is defined as:

• A) expected change in the option premium for a small change in time to expiration.
• B) expected change in the option premium for a small change in volatility.
• C) expected change in the option premium for a small change in the spot rate.
• D) expected change in the option premium for a small change in the domestic interest rate.

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Definitions:

Consolidation

Process of stabilizing a memory trace after learning.

Memory Trace

A memory trace is a theoretical concept for the physical and biochemical change that takes place in the brain to store a memory, enabling recall and recognition of past experiences.

Synaptic Effectiveness

Synaptic effectiveness refers to the efficiency with which neurotransmitters are released from one neuron and activate receptors on another, influencing the strength of the synaptic connection.

Implicit Memory

A type of memory that allows individuals to perform tasks without conscious awareness of these previous experiences, such as riding a bike.