Suppose Ralph's Stock Price Is Currently $50

question 36

Multiple Choice

Suppose Ralph's stock price is currently $50. In the next six months it will either fall to $30 or rise to $80. What is the option delta of a call option with an exercise price of $50?

• A) 0.375
• B) 0.500
• C) 0.600
• D) 0.75

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Definitions:

Usage Barrier

The factors that hinder a consumer from adopting or continuing to use a product or service.

Reluctant

Hesitant or unwilling to take a particular action due to doubt or uncertainty.

Product Adoption

The process by which consumers start using a new product or technology, often influenced by factors like ease of use, benefits, and peer adoption.

Psychological Barriers

Mental or emotional obstacles that hinder individuals from achieving goals, making decisions, or communicating effectively.