An American-Style Call Option with Six Months to Maturity Has

question 41

Multiple Choice

An American-style call option with six months to maturity has a strike price of $35.The underlying stock now sells for $43.The call premium is $12. If the option has delta of.5, what is its elasticity?

• A)4.17
• B)2.32
• C)1.79
• D)0.5

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Definitions:

Managerial Skill

A set of abilities and talents that an individual possesses to effectively manage or lead a team or organization.

Organizational Strategy

A comprehensive plan outlining how a company will achieve its goals and improve its competitive position.

Competitive Global Environment

The dynamic and challenging context in which businesses operate, characterized by competition across geographical boundaries.

Katz

Refers to Robert L. Katz, who is recognized for his work on the three essential managerial skills: technical, human, and conceptual.