Why Is It Necessary to Prepare a Research Proposal

question 70

Multiple Choice

Why is it necessary to prepare a research proposal?

• A)To organize and systemize ideas to improve a study
• B)To enable others to do research on it
• C)To increase the internal validity of a study
• D)To save the expense of running an actual experiment

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Definitions:

Volatility Risk

The risk in the value of options portfolios due to unpredictable changes in the volatility of the underlying asset.

Hedge Ratio

A ratio used to measure the proportion of a position that is hedged or the amount of assets used to hedge a risk exposure.

Dynamic Hedging

Constant updating of hedge positions as market conditions change.

Delta Neutral

The value of the options portfolio is not affected by changes in the value of the underlying asset.