The Change in a Put Option's Price in Response to a 1

question 52

Multiple Choice

The change in a put option's price in response to a 1% increase in interest rates is approximately equal to

• A) Rho
• B) B.-1 * rho
• C) 0.01 * rho
• D) 0.01 * -1 * rho
• E) 0.01-rho

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Definitions:

Rated Frequency

The specific frequency at which an electrical device or piece of equipment is designed to operate most effectively and efficiently.

Constant Horsepower

A motor characteristic where horsepower remains constant across varying speeds.

Rectifier

A device that converts alternating current (AC) to direct current (DC).

Converter

A device that changes electrical energy from one form to another, such as AC to DC or vice versa.