23-78 Which of the Following Shows the Change in the Value

question 25

Multiple Choice

23-78 Which of the following shows the change in the value of a put option for each $1 change in the underlying bond?

• A)Open interest.
• B)Volatility.
• C)Delta.
• D)Basis.
• E)Sigma.

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Definitions:

Cumulative Profit

The sum of all profits and losses up to a specific point in time.

Probability

The likelihood or chance of an event occurring, often quantified as a number between 0 and 1.

Poisson Distribution

A statistical distribution predicting the probability of a given number of events occurring in a fixed interval of time or space, assuming the events happen with a constant mean rate independently of the time since the last event.

Reservation

The act of reserving something in advance, such as a service or accommodation, or a specific area of land set aside or preserved for a particular purpose, often referring to lands designated for indigenous peoples.