With Regard to Options, Which of the Following Is Not

question 53

Multiple Choice

With regard to options, which of the following is not true of the hedge ratio?

• A) It indicates the change in the option price for a $1 change in stock price.
• B) It represents the ratio of options written to shares held long in a riskless portfolio.
• C) It is frequently greater than 1.
• D) It is commonly referred to as the option's delta.

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Definitions:

Great Migration

The movement of six million African Americans out of the rural Southern United States to the urban Northeast, Midwest, and West from about 1916 to 1970.

Sharecropping Opportunities

Refers to a system where individuals, often former slaves and their descendants, farmed land owned by another in return for a share of the crops, a practice common in the Southern United States after the Civil War.

European Immigration

The movement of people from Europe to other countries for reasons such as economic opportunity, escape from persecution, or family reunification, significantly shaping the demographics of the receiving countries.

Residential Instability

Residential instability denotes frequent changes in living situations or housing, which can reflect and contribute to social and economic instability.