Volatility Risk Is

question 44

Multiple Choice

Volatility risk is

• A) the volatility level for the stock that the option price implies.
• B) the risk incurred from unpredictable changes in volatility.
• 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:

Health Consciousness

An awareness and consideration for the health implications of one's habits and decisions, particularly in consumption and lifestyle.

Confidence Interval

A range of values used in statistics that is likely to contain the true value of an unknown parameter, calculated from a given set of sample data.

Sample Mean

The average of all measurements in a sample set, calculated by summing all observations and dividing by the number of observations.

Sample Variance

A measure of the dispersion or spread of data points in a sample, calculated as the sum of squared deviations from the mean, divided by the number of observations minus one.