A Stock Is Currently Priced at $44 a Share While

question 37

Multiple Choice

A stock is currently priced at $44 a share while the $45 call option is priced at $1.22. The call option delta is .86. What is the approximate call price if the stock increases in value to $45?

• A)$.12
• B)$.26
• C)$.96
• D)$1.98
• E)$2.08

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Definitions:

M-Form Organization

A type of organizational structure where a company is divided into semi-autonomous units or divisions, each responsible for its own profit and loss.

Customer Relationships

The management of interactions and engagement with customers to foster loyalty and long-term engagement.

Divisions Coordination

The management practice of aligning the operations and goals of different departments or units within an organization to optimize overall performance.

Functionally Organized Firm

A firm in which various divisions perform separate tasks, such as production and sales.