alleryStart learning →Speed measures the change in gamma with respect to what?
ATime passing by
BVolatility level
CInterest rate level
DUnderlying price
Answer & Solution
Correct answer: D. Underlying price
Speed is a third-order Greek that shows how gamma changes as the underlying price changes.
Keep practising Option (Finance)
Browse all Option (Finance) questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
When is charm especially useful for a delta-hedger?Which Greek is most important for an at-the-money straddle?Which Greek is also known as vega convexity?Which Greek is called delta decay?Gamma is classed as which kind of Greek?Which Greek measures sensitivity to the interest rate?Which Greek measures the time decay of an option?What happens to call and put values when volatility rises?