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The Gamma of a Cash-Or-Nothing Binary Call Option and the Theta

Question 3

Multiple Choice

The gamma of a cash-or-nothing binary call option and the theta of such an option


A) is always positive; is always negative.
B) is always positive; can be positive or negative.
C) can be positive or negative; is always negative.
D) can be positive or negative; can be positive or negative.

Correct Answer:

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