This market resolves based on the correct definition of Gamma in options trading. Gamma represents the rate of change between an option's Delta and the underlying asset's price. The correct answer is B: The rate of change in an option's Delta for every one-point move in the underlying asset.

Resolution will be determined by comparing the selected answer against established financial definitions from authoritative sources on options Greeks.

Background

If you think of speed as your delta, then the change in your speed is your gamma—in other words, gamma is your acceleration. At the money options have the highest gamma, because their deltas are the most sensitive to underlying price changes. All options have positive gamma values.

Considerations

Option A describes Theta (time decay), not Gamma. Option C describes Vega (volatility sensitivity), not Gamma. These are distinct Greeks that measure different sensitivities in options pricing.

This description was generated by AI.