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NEW QUESTION: 1
A. Option C
B. Option D
C. Option A
D. Option B
Answer: B
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A risk manager is considering how to best quantify option price dynamics using mathematical option pricing
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I. Implicit parameter estimate based on observed market prices
II. Estimates of sensitivity of option prices to parameter changes
III. Theoretical option determination based on assumptions
A. II
B. I, III
C. II, III
D. I, II, III
Answer: D
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