If the Black-Scholes Call Delta (Assume a Non-Dividend-Paying Stock)is Equal $S = K$

question 10

Multiple Choice

If the Black-Scholes call delta (assume a non-dividend-paying stock) is equal to 1/2,then which of the following statements is most valid?

• A)The call is at-the-money,i.e. , \(S = K\)
• )
• B)The call is at-the-money forward,i.e. , \(S = P V ( K )\)
• )
• C) \(P V ( K ) > S\)
• )
• D) \(P V ( K ) < S\)
• )

---

Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Registration Statement

A registration statement is a set of documents, including a prospectus, filed with the SEC by a company intending to go public, detailing its business and financial status.

Willfully Violates

Refers to the act of intentionally breaking a law or regulation.

Securities Act of 1933

A U.S. law enacted in response to the stock market crash of 1929 that aims to ensure more transparency in financial statements so investors can make informed decisions.