A drawback of the Value-at-Risk methodology is that: Actual returns are normally distributed We don't learn how bad losses will be, given that they fall below the alpha threshold evaluating the portfolio's returns ignores how the individual assets perform None of choices 1-3 are drawbacks 5 points Which of the following statements regarding Delta and Gamma is true? For every dollar increase in the underlying stock price, a call option premium increases by nearly a dollar when the call option is deep out of the money The sensitivity of the Delta of a call option to increases in the underlying stock price is highest when the call option is deep in the money Gamma is at its highest levels when the put option is at the money More than one of choices 1-3 are true None of choices 1-3 are true