The Gamma of an Option Is

question 64

Multiple Choice

The gamma 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:

Derived Class

A class that inherits attributes and methods from a base class, also known as a subclass.

Base Classes

In object-oriented programming, classes that act as a foundation from which other classes (derived or child classes) can be created through inheritance.

Interface

A programming construct that defines a contract of methods that implementing classes must provide, used to enforce a set of behaviors.