The Symbol $\sigma$ Is Used to Represent the
A)variance of the Population
B)standard

question 35

Multiple Choice

The symbol $\sigma$ is used to represent the

• A)variance of the population
• B)standard deviation of the sample
• C)standard deviation of the population
• D)None of the other answers are correct.

---

Definitions:

Put-call Parity

A financial principle stating the relationship between the price of European put and call options with the same strike price and expiration date.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period.

Underlying Stock

Underlying stock refers to the stock upon which a derivative contract, such as an option or futures contract, is based.

Black Scholes Model

A mathematical model used for pricing European call and put options, evaluating the options' theoretical value based on several factors including time, price, volatility, and the risk-free interest rate.