The Delta of a Call Option on a Non-Dividend-Paying Stock

question 13

Multiple Choice

The delta of a call option on a non-dividend-paying stock is 0.4.What is the delta of the corresponding put option?

• A) -0.4
• B) 0.4
• C) -0.6
• D) 0.6

---

Definitions:

Profit-Maximizing

The strategy or approach that a firm adopts aiming to achieve the highest possible profit from its operations, considering all variables and constraints.

Profit-Maximizing

The process or strategy of setting production levels or prices to achieve the highest possible profit.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product, as opposed to engaging in price discrimination.

Profit-Maximizing

A strategy or process businesses use to achieve the highest possible profit from their operations.