The Implied Standard Deviation Used in the Black-Scholes Option Pricing

question 51

Multiple Choice

The implied standard deviation used in the Black-Scholes option pricing model is:

• A)based on historical performance.
• B)a prediction of the volatility of the return on the underlying asset over the life of the option.
• C)a measure of the time decay of an option.
• D)an estimate of the future value of an option given a strike price (E).
• E)a measure of the historical intrinsic value of an option.

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Definitions:

Relationship Behaviors

Actions taken by individuals in leadership roles that help to establish and maintain positive interactions and connections with others.

Directing Behaviors

Actions by a leader to guide, instruct, and oversee the performance of team members.

Leadership Behavior

Involves the actions, practices, and attitudes leaders use to influence their team's performance, motivation, and engagement.

Ohio State Studies

A series of studies that helped to identify leadership behaviors and styles by focusing on the behaviors of leaders and their effects on group performance.