Which of the Following Statements Is Valid for European Options

question 36

Multiple Choice

Which of the following statements is valid for European options?

• A) The gamma of a call is positive and that of a put is negative.
• B) The gamma of a call is negative and that of a put is negative.
• C) The gamma of a call is negative and that of a put is positive.
• D) The gamma of a call is positive and that of a put is positive.

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Definitions:

Apical Ectodermal Ridges

Thickened regions of ectoderm important for the induction and growth of the limbs in developing embryos.

Frontonasal Process

The embryonic precursor to the forehead and the bridge of the nose, playing a significant role in facial development.

Maxillary Processes

Embryological structures that contribute to the formation of the upper jaw (maxilla) and other facial features.

Marginal Product

The change in output resulting from employing one more unit of a particular input, holding the levels of all other inputs constant in the production process.