Answer: D. continuously compounded risk-free rate.
Explanation:
A call option is simply referred to as a contract that is made between a buyer and a seller at a certain price which involves the exchange a security. The security might be a bond, stock etc.
The value of a call option is affected by the strike price, stock price, standard deviation of the returns on a risk-free asset and the time to maturity.
Answer: the sensitivity of an option's price to changes in volatility.
Explanation:
Vega us defined as the sensitivity of an option's price to changes in volatility. Vega denotes the amount by which the contract's price of an option changes due to the 1% change that occurs in the underlying asset's implied volatility.
Therefore, based on the scenario that has been explained above, the correct answer is the first option above.
Answer:
A
Explanation:
It would not be C because it is not specific enough. Moe must feel confident enough about the exam that does not feel the need to study on this particular night, and that his time would be better spent with Curly.
The answer is 567.879 percent
