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:

Growth Rate

The rate at which the number of individuals in a population increases in a given time period as a result of birth, death, and migration.

Environmental Problems

Issues caused by human activity or natural processes that harm the natural environment and negatively impact ecosystem health and biodiversity.

Exponentially

At an increasingly rapid rate, describing a process of multiplication by a constant at set intervals.

Renewable Resources

Resources that can be replenished naturally over time, such as solar and wind energy.