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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › june 2013
Q3 part c asks that when examining different currency options and their risk factors it was noticed that a long call option had a high gamma value.Explain the possible characteristics of a long call option with a high gamma value.
Can u pls answer this in a very simple way
Thanks
Sir can u pls clear my doubt?
Sorry – I thought I had already answered it 🙁
To be honest I cannot think of a different way of saying it than the examiner did in his answer.
(I would not over worry about it – it was only three marks anyway)