Assume the Standard Deviation of the Returns on ABC Stock

question 38

Multiple Choice

Assume the standard deviation of the returns on ABC stock increases.The effect of this change on the value of the call options on ABC stock is measured by which one of the following?

• A)theta.
• B)vega.
• C)rho.
• D)delta.
• E)gamma.

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Definitions:

Consultative Function

A role or service that provides expert advice and guidance in a particular field or area, typically to help organizations make informed decisions.

MIS Department

Stands for Management Information Systems Department, a division in an organization that focuses on computing technology and systems to manage company information and assist in strategic decision-making.

Current Average

A statistical term referring to the present or most recent average value of a particular dataset or measurement.

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