The Elasticity of an Option Is

question 88

Multiple Choice

The elasticity of an option is

• A) the volatility level for the stock that the option price implies.
• B) the continued updating of the hedge ratio as time passes.
• C) the percentage change in the stock call-option price divided by the percentage change in the stock price.
• D) the sensitivity of the delta to the stock price.

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Definitions:

Prospective Buyer

A potential customer who has shown interest in a company's product or service and is considered likely to make a purchase.

FAB Selling Technique

A sales strategy emphasizing the Features, Advantages, and Benefits of a product or service to persuade potential customers.

Regular Cola

A standard, traditional flavor of cola beverage, not characterized by any unique or distinguishing ingredient adaptations.

Need

A basic requirement or necessity that motivates behavior towards its satisfaction.