Options Are Also Called Derivative Assets Because They Derive Their

question 28

True/False

Options are also called derivative assets because they derive their value solely from the price of another asset.

---

Definitions:

Standard Deviation (σ)

An indicator that evaluates the degree of scatter or inconsistency of data points around the mean of the dataset.

Normal Model

A statistical model that assumes the data follow a normal (Gaussian) distribution.

Cutoff Value

A specific point on the scale of measurement that separates data into distinct classes or groups.

Car Speeds

The rates at which an automobile travels, typically measured in miles per hour or kilometers per hour.