The Percentage Change in the Stock Call-Option Price Divided by the Percentage

question 86

Multiple Choice

The percentage change in the stock call-option price divided by the percentage change in the stock price is called

• A) the elasticity of the option.
• B) the delta of the option.
• C) the theta of the option.
• D) the gamma of the option.

---

Definitions:

Contribution

The portion of sales revenue that exceeds variable costs, contributing towards covering fixed costs and generating profit.

Machine Hour

A measurement of production time, quantifying the number of hours a machine is in operation during a given period.

Variable Costs

Expenses that change in proportion to the activity of a business.

Target Costing

A pricing method that involves reverse-engineering a product to meet a specific price point by targeting the total cost.