A Portfolio Consists of 400 Shares of Stock and 200

question 24

Multiple Choice

A portfolio consists of 400 shares of stock and 200 calls on that stock.If the hedge ratio for the call is 0.6,what would be the dollar change in the value of the portfolio in response to a one dollar decline in the stock price?

• A) +$700
• B) +$500
• C) -$580
• D) -$520
• E) none of these

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Definitions:

Psychological Experiments

Research methods used in psychology to collect data and test hypotheses, often involving controlled conditions and variables to study behavior and mental processes.

Mode

The value that appears most frequently in a data set, a measure of central tendency in statistics.

Scores

Quantitative measures or values that represent the outcome of a test, performance, or assessment.

Middle Score

The median value in a set of numbers, representing the point at which half of the figures are above and half are below.