The Percentage Change in the Stock Call Option Price Divided

question 25

Multiple Choice

The percentage change in the stock call option price divided by the percentage change in the stock price is called

• A) the elasticity of the option.
• B) the delta of the option.
• C) the theta of the option.
• D) the gamma of the option.
• E) none of these.

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Definitions:

Monopoly

A market structure characterized by a single seller or producer supplying a unique product or service, with no close substitutes, giving them significant control over the market price.

Usury Law

Regulations governing the maximum interest rates that can be charged on loans, aimed at preventing lending practices deemed exploitative.

Market Rate

The prevailing price or interest rate at which goods, services, or securities are traded in a competitive marketplace.

Shortage

A situation where the demand for a product or service exceeds the supply available at a specified price.