You Hold a Portfolio of a Long Position in a Call

question 27

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 delta of the portfolio increases if the call is in-the-money.
• B)When the stock price increases,the delta of the portfolio decreases if the call is out-of-the-money.
• C)When the stock price increases,the delta of the portfolio increases whether or not the call is in-the-money.
• D)There is not enough information to answer this question.

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Definitions:

Job Performance

The effectiveness with which job duties are executed and the extent to which an employee accomplishes set tasks and goals.

Cognitive Dissonance

The discomfort felt when attitude and behaviour are inconsistent.

Inconsistent Attitudes

The exhibition of beliefs, feelings, or behaviors that contradict each other or fluctuate over a period of time.

Job Satisfaction

The extent of positive feelings or attitudes that individuals have towards their jobs.