Question
Which of the following is not correct about options and the markets in which they trade? Implied volatility shown in the 'IV' column on the
Which of the following is not correct about options and the markets in which they trade?
| Implied volatility shown in the 'IV' column on the CBOE platform is the annualized standard deviation of the underlying stock's return that traders currently use to price options on the stock |
| When a CBOE-traded Call option is exercised, the writer of the Call delivers the underling shares to the buyer of the option |
| I want to delta-hedge one long MSFT Put option bought on the CBOE. If the option's delta is -0.55 (-55%) then I would buy 55 MSFT shares to be delta-neutral |
| Calls and Puts traded on the CBOE are American style |
| all the above are correct |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started