Consider a Position in a Single Option on a Stock $\Delta P$

question 3

Multiple Choice

Consider a position in a single option on a stock. The position has a delta 12. The stock price is 10. What is an approximate relationship between the change in the portfolio value in one day, $\Delta P$ , and the return on the stock in one day, $\Delta x$ ? choose one)

• A) \(\Delta P = 12 \Delta x\)
• B) \(\Delta P = 1.2 \Delta x\)
• C) \(\Delta P = 120 \Delta x\)
• D) \(\Delta P = 22 \Delta x\)

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Definitions:

Attachment

A deep and enduring emotional bond that connects one person to another across time and space, often discussed in the context of relationships between infants and caregivers.

Attachment Theory

A psychological, evolutionary, and ethological theory concerning relationships between humans, primarily the bond between infants and their caregivers, influencing future social and emotional development.

Patterns of Relationships

Recurring dynamics and behaviors observed within interpersonal relationships, which can influence the nature of social connections and interactions.

Environmental Origins

The concept that one's surroundings and context can significantly influence their development, traits, and behaviors.