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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.


Definitions:

French Troops

Military forces from France, which have notably assisted the United States during the American Revolution and participated in various international conflicts.

American Revolution

The period from 1765 to 1783 in which the thirteen American colonies won independence from British rule, establishing the United States of America.

Manumit

To release from slavery; to free a slave by the owner's decision.

Free Black Population

Describes Black individuals who were not enslaved, especially pertinent in pre-Civil War America.

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