The Lambda of an Option Is Defined As

question 3

Multiple Choice

The Lambda of an option is defined as:

• A) expected change in the option premium for a small change in time to expiration.
• B) expected change in the option premium for a small change in volatility.
• C) expected change in the option premium for a small change in the spot rate.
• D) expected change in the option premium for a small change in the domestic interest rate.

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Definitions:

Photoreceptors

Cells in the retina that convert light into electrical signals, enabling vision.

Emergency Lights

Devices that provide illumination and visual signaling during power outages or emergency situations.

Müller-Lyer

An optical illusion involving lines of equal length that appear to be different lengths due to the addition of fins or arrows at the ends.

Meissner

Refers to Meissner's corpuscles, which are sensory receptors that respond to light touch and are located in the dermal papillae of the skin.