The Dollar Impact of a Change in the Underlying Stock

question 8

Multiple Choice

The dollar impact of a change in the underlying stock price on the value of a stock option is measured by __________.

• A) Gamma
• B) Delta
• C) Theta
• D) Beta
• E) Vega

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Definitions:

Personal Debt

Financial obligations incurred by an individual, as opposed to those owed by companies or governments.

Legal Action

The process of using the formal court system to resolve disputes, enforce laws, or seek redress.

Additional Compensation

Extra payment or benefits given beyond what is originally agreed upon or expected.

Partnership Law

The legal framework that governs the creation, operation, and dissolution of a business partnership, including the rights and responsibilities of the partners.