The Phi of an Option Is Defined As

question 17

Multiple Choice

The Phi 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:

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Order Liquidity

The ease with which an order can be filled in a market without affecting the current price of the asset.

Declaration Dividend

The act of a company's board of directors formally announcing the payment of a dividend to shareholders.

Financial Statements

Reports that summarize the financial activities and condition of a business, including balance sheet, income statement, and cash flow statement.