Which of the Following Is True for a Call Option

question 3

Multiple Choice

Which of the following is true for a call option on a non-dividend-paying stock?

• A) If the option is at the money (stock price equals strike price) it must have a delta of 0.5
• B) If the strike price equals the forward price of the stock, it must have a delta of 0.5
• C) If the option has a delta of 0.5, it must be out of the money
• D) If the option has a delta of 0.5, it must be in of the money

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Definitions:

Anorexia Nervosa

A serious mental health disorder characterized by an intense fear of gaining weight and a distorted body image, leading to excessive weight loss and inadequate food intake.

Mania

A mental state characterized by an excessively elevated mood, energy levels, and sometimes severe agitation or excitement.

Major Depression

A clinical condition characterized by persistent feelings of sadness, a lack of interest in activities, and various physical symptoms, affecting one's daily functioning.

Bipolar Disorder

A psychological disorder marked by severe fluctuations in mood, consisting of intense emotional peaks (mania or hypomania) and troughs (depression).