Which of the Following Is Not Correct About a Call's

question 24

Multiple Choice

Which of the following is not correct about a call's gamma?

• A)it is the same as a put's gamma
• B)it is large when the call is at-the-money
• C)it can be viewed as a measure of the risk of the delta
• D)it is a source of risk that can be hedged only by using another option
• E)none of the above

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Definitions:

Prevailing Easterly Winds

Winds that typically blow from the east, common in tropical regions close to the equator due to the Earth's rotation and atmospheric conditions.

Upwellings

The rising of deep, cold, and nutrient-rich water to the surface, fostering significant biological productivity.

Thunderhead

A large, towering cumulonimbus cloud associated with thunderstorms and severe weather conditions.

Cold Front

A leading edge of a cooler mass of air, replacing (at ground level) a warmer mass of air, which can lead to dramatic changes in weather conditions.