The Elasticity of an Option Is

question 76

Multiple Choice

The elasticity of an option is

• A)the volatility level for the stock that the option price implies.
• B)the continued updating of the hedge ratio as time passes.
• C)the percentage change in the stock call option price divided by the percentage change in the stock price.
• D)the sensitivity of the delta to the stock price.
• E)A and C.

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Definitions:

Outputs

The final products, services, or results generated by a system, process, or project.

Foundry

A workshop or factory for casting metal, where molten metal is poured into molds to create various shapes.

Manhole Covers

Heavy removable plates placed over the openings of manholes to prevent accidental falls into them and to block unauthorized access to the municipal services below.

Productivity

A measure of efficiency that calculates the amount of output produced per unit of input.