The Hedge Ratio of an Option Is Also Called the Option's

question 2

Multiple Choice

The hedge ratio of an option is also called the option's

• A) alpha.
• B) beta.
• C) sigma.
• D) delta.
• E) rho.

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Definitions:

Withholding Allowances

Amounts used to calculate how much income tax an employer should withhold from an employee's paycheck, based on the employee's personal situation.

Federal Unemployment Tax

A tax paid by employers to fund the federal government's oversight of the state unemployment insurance programs.

Copy A

This term is often associated with tax forms, where Copy A is the official part of a form sent to a tax authority, like the IRS, detailing financial information.

Form W-2

A tax form used in the United States to report wages paid to employees and the taxes withheld from them.