The Change in the Value of an Option for a Small

question 27

Multiple Choice

The change in the value of an option for a small unit change in the price of the underlying security is called the:

• A)alpha of an option
• B)gamma of an option
• C)beta of an option
• D)delta of an option

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Definitions:

Bike Rack

A stationary fixture to which bicycles may be securely attached for parking purposes.

Assembly Time

The total amount of time required to assemble a product from its parts, often a critical factor in manufacturing efficiency.

Normally Distributed

A probability distribution where the data tends to cluster around a central mean value, creating a curve that is symmetric around the mean.

Normally Distributed

A type of distribution in which the data's histogram has a bell-shaped curve, indicating that most values cluster around a central region, with fewer at the edges.