You Own 800 Shares of Bradley Co

question 12

Multiple Choice

You own 800 shares of Bradley Co. stock that is currently priced at $33 a share. Given this price, the option delta for a $35 call option on this stock is .66. How many $35 call options do you need to hedge against a −$1 change in the price of the stock?

• A)buy 1,212 options
• B)buy 1,813 options
• C)buy 1,847 options
• D)write 1,212 options
• E)write 1,847 options

---

Definitions:

Supervisor

An individual responsible for overseeing and guiding the work of others.

Profound Sadness

An intense feeling of deep sorrow or grief, often associated with significant loss or distressing life events.

Fatigue

A state of extreme tiredness or exhaustion, often resulting from mental or physical exertion or illness.

Open-Ended Questions

Questions designed to elicit more than a simple yes or no response, encouraging detailed answers.