Which of the Following Is True When Delta,but Not Gamma,is

question 10

Multiple Choice

Which of the following is true when delta,but not gamma,is used in calculating VaR for option positions?

• A) VaR for a long call is too low and VaR for a long put is too low
• B) VaR for a long call is too low and VaR for a long put is too high
• C) VaR for a long call is too high and VaR for a long put is too low
• D) VaR for a long call is too high and VaR for a long put is too high

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Definitions:

American Politics

The political structure, practices, and activity within the United States, characterized by a federal system and a two-party system.

Swing Election

An election in which the outcome is considered uncertain, and the votes of swing voters could determine the result, often leading to significant changes in governance.

Wave Election

An election where one political party makes significant gains, often resulting in a dramatic shift in the political landscape.

Coattails

The phenomenon where a political candidate's popularity boosts the electoral chances for other members of the same party.