Which of the Following Statements Is True? Consider Options Written

question 10

Multiple Choice

Which of the following statements is true? Consider options written on a non-dividend-paying stock.

• A)All European and American options have positive gamma.
• B)European options and American calls have positive gamma,but American puts may have negative gamma.
• C)European options have positive gamma,but American options may have positive or negative gamma.
• D)Gamma may be positive or negative for both American and European options.

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Definitions:

Goal Alignment

The process of ensuring that individual, team, and organizational objectives are in agreement and contribute to the company's strategy.

Forecasting

The process of making predictions about the future based on past and present data analysis, often used in business for planning purposes.

Internal Labour Force

Employees who are currently working within an organization, as opposed to external candidates or contractors.

Staffing Table

A tool used in human resources planning that lists all current and projected job positions in an organization, along with other critical information such as the number of people needed for each role.