Which of the Following Is Not Correct About a Call's

question 24

Multiple Choice

Which of the following is not correct about a call's gamma?

• A)it is the same as a put's gamma
• B)it is large when the call is at-the-money
• C)it can be viewed as a measure of the risk of the delta
• D)it is a source of risk that can be hedged only by using another option
• E)none of the above

---

Definitions:

Nucleophilic

Pertaining to a molecule or ion that donates an electron pair to form a chemical bond in reaction.

Substitution Reaction

A chemical reaction where one functional group in a chemical compound is replaced by another.

Mechanism

A mechanism is a description of the step-by-step process by which reactants are transformed into products in a chemical reaction, including the intermediate stages and transition states.

Anionic Nucleophiles

Negatively charged species that donate an electron pair to electrophiles in chemical reactions.