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What is the term used to describe a quantitative approach to trading that relies on equations and numbers?

"Casual Trading"

"Model Thinking"

"Intuitive Trading"

"Speculative Analysis"

Qn. 2 / 5

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How does the delta of a call option change as the spot price of the underlying asset increases?

"Delta decreases"

"Delta remains constant"

"Delta increases"

"Delta fluctuates randomly"

Qn. 3 / 5

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What is the delta value of an at-the-money (ATM) option?

"0.0"

"0.5"

"1.0"

"Variable"

Qn. 4 / 5

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Which type of option tends to have the highest percentage change in premium for a significant move in the underlying asset?

"Deep in-the-money (ITM) options"

"Slightly out-of-the-money (OTM) options"

"At-the-money (ATM) options"

"Deep out-of-the-money (OTM) options"

Qn. 5 / 5

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Why is buying a deep in-the-money (ITM) option often compared to buying the underlying asset itself?

"Both have similar margin requirements"

"Both have the same expiry date"

"Both experience similar price changes in response to changes in the underlying asset"

"Both have the same delta value"