The Rho of an Option Is Defined As

question 8

Multiple Choice

The Rho 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 foreign interest rate.
• D) expected change in the option premium for a small change in the domestic interest rate.

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Definitions:

Culture-Fair Tests

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The practice of simplifying language use to the most basic necessary elements.

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A measure of an individual's mental ability expressed as the age at which an average individual reaches the same ability.

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An abbreviation for Intelligence Quotient, a score derived from standardized tests designed to measure human intelligence and cognitive abilities.