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:

Low-Power Transmitters

Electronic devices designed to broadcast signals over a short distance with limited power output, often used in personal or localized broadcasting scenarios.

GEO

Stands for Geostationary Earth Orbit, a type of orbit 35,786 kilometers above the Earth's equator and following the direction of the Earth's rotation.

LEO

Low Earth Orbit, a region of space around the Earth at altitudes between 160 to 2,000 kilometers, often used for satellites that require close communication with Earth.

MEO

Medium Earth Orbit, a region of space around the Earth above low Earth orbit (LEO) and below geostationary orbit (GEO), often used for satellites.