Portfolio a Consists of 600 Shares of Stock and 300

question 27

Multiple Choice

Portfolio A consists of 600 shares of stock and 300 calls on that stock. Portfolio B consists of 685 shares of stock. The call delta is 0.3. 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) Portfolio A if the stock price increases, and portfolio B if it decreases
• E) Portfolio B if the stock price increases, and portfolio A if it decreases

---

Definitions:

Opioid Analgesic

A category of potent pain-relief medications derived from opium or synthesized to mimic the effects of opium's active substances, like morphine and codeine, used to treat moderate to severe pain.

Respiratory Rate

Respiratory rate is the number of breaths a person takes per minute, considered an essential vital sign in assessing respiratory health.

Objective Assessment

An evaluation based on measurable and observable criteria to determine an individual's or program's achievement or performance.

Post-operative Pain

Pain experienced after undergoing surgery, which can be managed through various pain relief methods.