The Delta of a Call Option on a fiRm's Assets

question 397

Multiple Choice

The delta of a call option on a firm's assets is .804. This means that a $60,000 project will increase the value of equity by:

• A) $11,760.
• B) $21,336.
• C) $48,240.
• D) $74,627.
• E) $108,240.

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