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

question 40

Multiple Choice

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

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

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Definitions:

Caudate Nucleus

A nucleus located within the brain that plays important roles in various neural functions, including the regulation of voluntary movement.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting heart rate, blood pressure, and blood sugar levels.

Anorexia Nervosa

A serious eating disorder characterized by an intense fear of gaining weight and a distorted body image, leading to self-imposed starvation and excessive weight loss.

Hypothalamus

Component of the brain that regulates eating, drinking, sex, and basic emotions; abnormal behaviors involving any of these activities may be the result of dysfunction in the hypothalamus.