The Sensitivity of the Option Premium to a Small Change

question 6

True/False

The sensitivity of the option premium to a small change in the spot exchange rate is called the gamma.

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Definitions:

Reaction Times

The duration of time it takes from the presentation of a stimulus to the initiation of a response, often measured in psychological experiments.

Friedman's Test

Aimed at detecting treatment differences without relying on parameter-based assumptions, this test is applied across multiple attempts.

Experimental Design

The process of planning an experiment to ensure that it can test hypotheses effectively and produce valid and reliable results.

Experimental Design

A plan for conducting an experiment to ensure that it can test hypotheses effectively while minimising errors or bias.