Which Is a Not a Discrete Random Variable

question 52

Multiple Choice

Which is a not a discrete random variable?

• A) The number of births in a hospital on a given day
• B) The number of fives obtained in four rolls of a die
• C) The hourly earnings of a call center employee in Boston
• D) The number of applicants applying for a civil service job

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Definitions:

Volatility

A statistical measure of the dispersion of returns for a given security or market index, indicating the degree of variation from the average.

Hedge Ratio

A ratio used to calculate the number of derivatives needed to hedge a particular position, aiming to provide protection against adverse price movements.

Dollar Change

The difference in the price of a security from one trading period to the next, expressed in dollars.

Exercise Price

The amount for which someone holding an option is allowed to buy (for call options) or sell (for put options) the base asset.