Question: Match the term with the correct statement. Note: I know we did not cover this, but Id like you to research it own your own

Match the term with the correct statement. Note: I know we did not cover this, but Id like you to research it own your own and at least be aware of these terms.

Delta

-

Gamma

-

Vega

-

Implied Volatility

A.

Sensitivity of an options price to a change in the price of the underlying.

B.

Sensitivity of an options price to a change in expected volatility for the underlying .

C.

The additional change in a convertible bonds value for a larger change in the price of the underlying stock (rate of change of the rate of change) .

D.

Obtained from backing it out of the observed market price for options.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!