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For a $150/£ Call Option with an Initial Premium of $0

question 64

Multiple Choice

For a $1.50/£ call option with an initial premium of $0.033/£ and a lambda of 0.4,after an increase in annual volatility of 1 percent point - for example from 10% to 11% - the new optiom premium would be:


Definitions:

Hindbrain

The posterior portion of the brain comprising structures such as the cerebellum and medulla oblongata, involved in essential functions like respiration and movement coordination.

Tegmentum

A region in the brainstem involved in movement and arousal, playing a crucial role in many basic life functions.

CNS

Central Nervous System, comprising the brain and spinal cord, responsible for processing and transmitting neural information.

PNS

The Peripheral Nervous System, which includes all the nerves that lie outside the brain and spinal cord.

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