Module 9 knowledge check

Does the passage of time impact option premium pricing?

Does future market volatility increases make option prices go up or down?

Delta is the speed at which an option will change in prices as a result of a change in price of the underlying futures contract?

The combined deltas of a call and put from the strike price and expiration will equal 1.

Gamma is the rate of acceleration at which an option changes in Theta?

Gamma is the second derivative, acceleration.

Vega is the rate at which an option will change in value with a 1% change in historic volatility?

Vega is the rate at which an option will change in value with a 1% change in implied volatility?

When is Theta usually measured?

Does a change in theta increase the option premium?