1 explain how an optionrsquos deltagamma and a bondrsquos, Ask an Expert

Finance

1. Explain how an option’s delta/gamma and a bond’s duration/convexity are similar.

2. Suppose you own an American call option on a stock that does not pay common dividends. The call option has one month until expiration. Under what circumstances would you exercise this call option early?

3. What is the most critical variable in the Black-Scholes model? Explain.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92096738

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