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Considering the Standard Deviation of Returns in Option Pricing: 1

question 9

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Considering the standard deviation of returns in option pricing: 1 + upside change = u = e^(σ)(√h).


Definitions:

Total Revenue

The total income received by a company or organization from its normal business activities, usually from the sale of goods and services to customers.

Figure 16-11

This appears to be a reference to a specific figure in a text or document and without further context, it can't be precisely defined.

Profit

The financial gain realized when the revenue from business activities exceeds expenses, costs, and taxes.

Revenue

The sum of earnings from selling goods or providing services which are fundamental to a company's core business activities.

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