The Phi of an Option Is Defined As

question 17

Multiple Choice

The Phi 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 foreign interest rate.
• D) expected change in the option premium for a small change in the domestic interest rate.

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Definitions:

Arabic Numbers

Arabic numbers are the ten digits (0, 1, 2, 3, 4, 5, 6, 7, 8, 9) used around the world today for denoting quantities.

Geographic Location

The specific physical place where something exists, characterized by coordinates like latitude and longitude, or a descriptive address or landmark.

Place Division

An organizational method that categorizes information based on geographical location or placement.

Parallelism

The use of components in sentences that are grammatically the same or similar in their construction, sound, meaning, or meter.