CUMULATIVE NORMAL DISTRIBUTION TABLE

question 48

Multiple Choice

CUMULATIVE NORMAL DISTRIBUTION TABLE
-Refer to the information above. A stock is currently selling for $60. The stock pays no dividends. A call option on the stock has a strike price of $55 and has 3 months to expiration.
The implied volatility is 30%, and the annualized risk-free rate is 3%. What is the option's
Hedge ratio, rounded to the nearest hundredth?

• A)0.55
• B)0.71
• C)0.76
• D)0.70

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Definitions:

Delegation

The assignment of responsibility or authority to another person to carry out specific activities, often seen in organizational contexts and management.

Transferring Authority

The process of handing over control or responsibility from one individual or entity to another.

Selected Situation

A specific scenario or setting chosen for particular analysis, observation, or intervention.

Post-Operative

Referring to the period after surgical procedures, focusing on patient recovery, wound healing, and monitoring for any complications.