Volatility Basics

What is the rate of change of option premium concerning the change in volatility?

• Delta

• Gamma

• Theta

• Vega

How is volatility commonly defined in relation to the stock market?

• The up-down movement of the stock market

• The average number of scores per game

• The dispersion of returns for a given security or market index

• The sum of the squares of the deviation divided by the total number of observations

What does standard deviation represent in the context of volatility?

• Risk

• Mean

• Sigma

• Variance

How is volatility measured?

• By using the standard deviation

• By calculating the total score

• By finding the average number of scores per game

• By summing the squares of the deviation

What is the range within which Nifty is likely to trade 1 year from now, given its volatility of 16.5%?

• 7136 to 9957

• 5000 to 8000

• 10000 to 12000

• 6000 to 9000

What is the standard deviation for Billy's scores?

• 1.79

• 11.18

• 3.22

• 16.5

What is the measure used to quantify the amount of variation or dispersion of a set of data values?

• Standard deviation

• Variance

• Sigma

• Mean

Which player is more likely to score at least 20 runs?

• Billy

• Mike

• Both

• Neither

What is the range within which TCS is likely to trade 1 year from now, given its volatility of 27%?

• 10.98 to 33.34

• 5000 to 8000

• 10000 to 12000

• 6000 to 9000

What is the standard deviation for Mike's scores?

• 1.79

• 11.18

• 3.22

• 27