You Own 1,800 Shares of Textile Stock, Which Is Currently

question 39

Multiple Choice

You own 1,800 shares of Textile stock, which is currently, valued at $62 a share. The $65 put has a premium of $4.26 and a put delta of −.60. What position should you take in $65 put contracts to hedge your stock against a $1 decrease in price?

• A)buy 3 contracts
• B)buy 30 contracts
• C)buy 300 contracts
• D)write 3 contracts
• E)write 30 contracts

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Definitions:

Taiwan

An island in East Asia with political status that is subject to international debate, known for its bustling economy, vibrant democracy, and technological innovation.

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The extent to which a message is noticeable and accessible to the target audience.

Media Relations

The aspect of public relations that deals with establishing and maintaining a positive image through media outlets including newspapers, television, and online platforms.

Political Setting

The environment or context related to government, policy-making, and political actors or institutions.