If E Is the Base of Natural Logarithms; (σ)Is the Standard

question 50

Multiple Choice

If e is the base of natural logarithms; (σ) is the standard deviation of the continuously compounded annual returns on the asset; and h is the time to expiration, expressed as a fraction of a year, then the quantity (1 + upside change) is equal to

• A)e^[(σ)× SQRT(h)].
• B)e^[h × SQRT(σ)].
• C)(σ)× e^[SQRT(h)].
• D)1/(σ)× e^[SQRT(h)].

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Definitions:

Sensory System

The part of the nervous system responsible for processing sensory information received from the environment, including sight, sound, touch, taste, and smell.

Mental Status

A state of a person's cognitive and emotional functioning which includes their consciousness, attention, orientation, memory, and mood.

Gross Motor Skill

Skills that involve the large muscles of the body and include activities such as walking, running, jumping, and maintaining balance.

Coordination

The ability to use different parts of the body together smoothly and efficiently.