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:

Timbre

The characteristic quality or color of a sound that distinguishes it from other sounds of the same pitch and volume.

Vision for Perception

The process by which the brain interprets visual stimuli from the eyes to understand and interact with the environment.

Vision for Action

Vision for action refers to the process of planning and executing movements based on visual inputs, highlighting how vision informs motor control.

Visual Cortex

The part of the cerebral cortex that processes visual information, located in the occipital lobe of the brain.