Portfolio a Consists of 400 Shares of Stock and 400

question 47

Multiple Choice

Portfolio A consists of 400 shares of stock and 400 calls on that stock.Portfolio B consists of 500 shares of stock.The call delta is 0.5.Which portfolio has a higher dollar exposure to a change in stock price?

• A)Portfolio B.
• B)Portfolio A.
• C)The two portfolios have the same exposure.
• D)A if the stock price increases and B if it decreases.
• E)B if the stock price decreases and A if it increases.

---

Definitions:

Status Quo

The existing state or condition of affairs, often used to describe situations that remain unchanged.

Work Habits

Routine behaviors and practices that employees exhibit in the workplace, which can impact their performance and efficiency.

Workplace Diversity

Includes important human characteristics that influence employee values, their perceptions of self and others, behaviours, and interpretations of events.

Poor-Quality Applicants

Individuals who apply for positions but do not meet the necessary criteria, experience, or skill set required for the job.