Motivation Problems Occur as the Number of Levels in the Hierarchy

question 19

Multiple Choice

Motivation problems occur as the number of levels in the hierarchy increases because:

• A)Parkinson's law is activated.
• B)downsizing and restructuring tends to occur at this stage.
• C)responsibility and authority at each level decreases.
• D)managers' workload tends to increase.

Calculate and interpret the exposure of portfolios that include stock and options to changes in stock price.

Identify and apply the relationship between call and put hedge ratios.

Understand the concept of delta neutrality and its implications for portfolio management.

Understand the impact of volatility risk on option pricing and hedging strategies.