The Gamma of a Cash-Or-Nothing Binary Call Option and the Theta

question 3

Multiple Choice

The gamma of a cash-or-nothing binary call option and the theta of such an option

• A) is always positive; is always negative.
• B) is always positive; can be positive or negative.
• C) can be positive or negative; is always negative.
• D) can be positive or negative; can be positive or negative.

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Definitions:

Asexual Fragmentation

A method of asexual reproduction where an organism breaks into fragments, each of which develops into a new organism.

Bilateral Symmetry

A body plan in which there are two symmetrical halves of the body, with a distinct left and right, matching one another.

Radial Symmetry

A body plan in which body parts are arranged around a central axis, characteristic of many invertebrates like jellyfish and sea urchins.

Deuterostomes

A major group of animals in which the anus develops from the first opening in the embryo, with humans and starfish as examples.