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:

HSA

Health Savings Account; a savings account that allows individuals to set aside money pre-tax for medical expenses.

Form 8889

The tax form used for reporting contributions, distributions, and taxes related to Health Savings Accounts (HSAs).

HSA

A Health Savings Account, a tax-advantaged account used to save for medical expenses.

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The amounts paid for health insurance coverage, which may be tax-deductible under certain conditions.