An Implied Standard Deviation Can Be Computed by Using the Directly

question 32

Multiple Choice

An implied standard deviation can be computed by using the directly observable Black-Scholes-Merton option pricing variables plus an option price and solving the Black-Scholes-Merton formula for

• A) Beta
• B) Vega
• C) Sigma
• D) Rho
• E) Gamma

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Definitions:

Minerals

Naturally occurring, inorganic solids with a definite chemical composition and a crystalline structure, forming the building blocks of rocks.

Minerals Weather

The process of breaking down or alteration of minerals in rocks by physical, chemical, or biological processes at or near the earth's surface.

Bowen's Reaction Series

A sequence that describes the order in which minerals crystallize from cooling magma according to their chemical composition and temperature.

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental.