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

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Definitions:

Developmental Psychopathology

The study of the origin and evolution of psychological disorders, considering the influence of biological, psychological, and sociocultural factors across the lifespan.

Multiple Factors

A term referring to the variety of elements or conditions that contribute simultaneously to a situation or outcome.

Life Span Development

The study of how individuals grow, change, and adapt at different life stages, from conception to death, incorporating physical, cognitive, and socioemotional changes.

Clinical Practitioners

Healthcare professionals, such as doctors and therapists, who apply theoretical and empirical knowledge to diagnose and treat patients.