Calculus and Derivatives

What does the term 'Derivatives' refer to in high school calculus?

• Solving lengthy differentiation and integration problems

• Calculating the change in distance over time

• Measuring the change in premium for a given change in the underlying

• Calculating the change in velocity for a given change in time

What is the velocity of the car in the given example?

• 4 kmph

• 5 kmph

• 48 kmph

• 96 kmph

What is the 1st order derivative of distance travelled?

• Acceleration

• Velocity

• Change in premium

• Change in underlying

What is the change in velocity in the second leg of the journey?

• 48 kmph

• 96 kmph

• 144 kmph

• 864 kmph

What is the 2nd order derivative of position?

• Acceleration

• Velocity

• Change in premium

• Change in underlying

What does Gamma of an option measure?

• Change in premium for a given change in the underlying

• Change in velocity for a given change in time

• Change in distance travelled for a given change in time

• Change in delta for a given change in the underlying

What is the 1st order derivative of premium?

• Acceleration

• Velocity

• Change in premium

• Change in underlying

What is the 2nd order derivative of premium?

• Acceleration

• Velocity

• Change in premium

• Change in underlying

What is the value of delta for a given change in the underlying and premium?

• Constant

• Variable

• Zero

• Infinity

What is the expected value of delta for a given change in the underlying?

• Gamma

• Theta

• Vega

• Rho