What Is the Relationship Between the Variance and the Standard

question 33

Multiple Choice

What is the relationship between the variance and the standard deviation?

• A)Variance is the square root of the standard deviation.
• B)Variance is the square of the standard deviation.
• C)Variance is twice the standard deviation.
• D)There is no constant relationship between the variance and the standard deviation.

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Definitions:

Strike Price

The set price at which the holder of a financial instrument can buy or sell the underlying asset in options trading.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a particular time period.

Out-Of-The-Money

A term used to describe an option contract that would not result in a profit if exercised at the current market level.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the company's equity, usually at the option of the bondholder.