A Portfolio Consists of 400 Shares of Stock and 200

question 42

Multiple Choice

A portfolio consists of 400 shares of stock and 200 calls on that stock. If the hedge ratio for the call is 0.6, 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) −$580
• D) −$520

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Definitions:

Dendritic Cells

Immune cells that process antigen material and present it on the surface to other cells of the immune system, key for initiating a T-cell response.

Artificially Induced

A condition or reaction that is caused or encouraged by human intervention rather than occurring naturally.

Naturally Induced

A process or reaction that occurs in a natural environment without human intervention.

Transferred

The act of moving or being moved from one place, position, person, or organization to another.