The Gamma of a Cash-Or-Nothing Binary Call Option Is Generally

question 38

Multiple Choice

The gamma of a cash-or-nothing binary call option is generally when the option is out-of-the-money and generally when it is in-the-money.

• A)negative;positive.
• B)negative;negative.
• C)positive;negative.
• D)positive;positive.

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Definitions:

Cyclopentane

A ring-shaped hydrocarbon with a molecular formula C5H10, characteristic of saturated cyclic compounds.

Pyridine

A basic nitrogen-containing heterocyclic compound, resembling benzene but with one CH group replaced by a nitrogen atom.

Thionyl Chloride

A reactive chemical compound used widely in organic synthesis to convert carboxylic acids into acyl chlorides.

Trans-4-methylcyclohexanol

An organic compound characterized by a cyclohexane ring with a methyl group and hydroxyl group in trans configuration relative to each other.