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    Exam Name: C-THR96-2105

    Version: V15.35

    Q & A: 208 Questions and Answers

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    NEW QUESTION: 1
    Between two options positions with the same delta and based upon the same underlying, which would have a smaller VaR?
    A. the position with a higher gamma
    B. the position with a higher theta
    C. the position with a lower gamma
    D. both positions would have an identical VaR
    Answer: A
    Explanation:
    Explanation
    The second order approximation of the VaR of an options position is given by [Option delta x Underlying's VaR - Option gamma/2 x (Underlying's VaR)

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