A Portfolio Consists of 100 Shares of Stock and 1500

question 21

Multiple Choice

A portfolio consists of 100 shares of stock and 1500 calls on that stock. If the hedge ratio for the call is 0.7, what would be the dollar change in the value of the portfolio in response to a $1 decline in the stock price?

• A) +$700
• B) +$500
• C) −$1,150
• D) −$520

---

Definitions:

The Highly Educated

Individuals who have attained a high level of formal education, typically at the tertiary level, encompassing college, university, or beyond.

U.S. Sentencing Commission's

An independent agency of the federal judicial branch of the United States that develops sentencing guidelines and policies for the federal courts, with the aim of reducing sentencing disparities and promoting transparency and proportionality in sentencing.

Ethical Compliance Programs

Initiatives within organizations designed to ensure behavior and practices adhere to both legal standards and ethical norms.

Institutionalization

The process of integrating or embedding practices, norms, or values into an organization or society so they become stable and expected behaviors.