A Portfolio Consists of 800 Shares of Stock and 100

question 83

Multiple Choice

A portfolio consists of 800 shares of stock and 100 calls on that stock.If the hedge ratio for the call is 0.5.What would be the dollar change in the value of the portfolio in response to a $1 decline in the stock price

• A)+$700
• B)-$850
• C)-$580
• D)-$520

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Definitions:

Rewards

Benefits or positive feedback given for a specific behavior, encouraging repetition of such behavior.

Remarriage

The act of marrying someone again after being divorced or widowed from a previous spouse.

Stepparenting

The role or act of being a stepparent, which involves parenting a spouse's child(ren) from a previous relationship, without being their biological parent.

Age

A measure of the time an individual has existed from birth, often used to reference growing older and the associated physiological and mental developments or declinations.