A 6-Month Call Option on ABC Stock Is Priced at $2.80

question 43

Multiple Choice

A 6-month call option on ABC stock is priced at $2.80. The call option delta is .66. How will the approximate call option price be computed if the underlying stock price increases by $1?

• A)$2.80
• B)$2.80 − $.66
• C)$2.80 + $.66
• D)$2.80 × .66
• E)$2.80 × (1 + .66)

Acknowledge the need to review the estimating method when estimates are rarely exceeded.

Understand that an activity can have costs from multiple vendors.

Grasp the differences in estimating methods across project phases.

Learn the concept of actual cost versus detailed cost estimates.

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Definitions:

Broca's Area

An area located in the dominant hemisphere's frontal lobe, associated with the production of speech and the processing of language.

Paralysis

The loss of the ability to move one or more muscles, usually as a result of damage to the nervous system.

Speech Defect

A disorder or imperfection in the production or articulation of speech sounds.

Left Frontal

refers to the frontal part of the left hemisphere of the brain, associated with functions like reasoning, problem-solving, and planning.