What Is the Total Dollar Cost to Create a Delta

question 2

Multiple Choice

What is the total dollar cost to create a delta hedge position against a 200 short call position? Assume calls are priced at $4.16,the delta is 0.7644,and stock price is $73.00.

• A) $9,880
• B) $10,328
• C) $11,168
• D) $12,660

Demonstrate knowledge of how specific brain injuries or disorders can affect behavior and cognitive functions.

Understand the role of the brain in sensory and motor functions.

Describe how the brain's structure can change in response to experience or damage.

Explain the role of the limbic system in emotions, motivation, and memory formation.

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Definitions:

Future

A contract to buy or sell a specified asset at a predetermined price at a specified time in the future, used for hedging or speculation.

Equal Amounts

This term typically refers to financial transactions or mathematical problems where a series of payments or values are the same in each period.

Annuity Due

An annuity due is a type of annuity payment where payments are made at the beginning of each period, rather than at the end, as in an ordinary annuity.

Perpetuity

An infinite series of equal payments at equal intervals of time.