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      Question

      ______ measures the sensitivity of an option to change

      in risk-free rates.
      A Delta Correct Answer Incorrect Answer
      B Gamma Correct Answer Incorrect Answer
      C Rho Correct Answer Incorrect Answer
      D Theta Correct Answer Incorrect Answer
      E Beta Correct Answer Incorrect Answer

      Solution

      Stock options are affected by Greeks like delta, theta, gamma. Rho measures the option’s sensitivity to change in the risk-free rate.

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