You Hold a Portfolio of a Long Position in a Call

question 7

Multiple Choice

You hold a portfolio of a long position in a call and a long position in a put,both for the same strike and maturity.Which of the following statements is true?

• A)When the stock price increases,the rho of the portfolio increases if and only if the call is in-the-money.
• B)When the stock price increases,the rho of the portfolio decreases if and only if the call is out-of-the-money.
• C)When the stock price increases,the rho of the portfolio increases whether or not the call is in-the-money.
• D)When the stock price increases,the rho of the portfolio may increase,decrease or stay constant depending on volatility and depth-in-the-money.

Recognize the significance of action research in the process of implementing change and its benefits.

Identify the essential elements of effective change management including the importance of managing mental models, defensive routines, and establishing a culture of learning.

Distinguish between different models and theories of change management such as Lewin's change model, the generic model, and chaos theory.

Comprehend the importance of systems thinking in viewing organizational change and its implications.

---

Definitions:

Cognitive Processes

Mental activities involved in the acquisition, processing, storage, and retrieval of information, including perception, memory, thinking, and problem solving.

Developmental Sequence

The order in which a series of developmental milestones are achieved, often pertaining to physical, cognitive, or emotional growth.

Imitation Reflex

An innate tendency of infants to mimic or reproduce behaviors observed in others, facilitating learning and development.

Caregiver-Infant Bonding

The emotional connection that develops between an infant and their primary caregiver, crucial for the child’s emotional and social development.