You Own 800 Shares of Bradley Co

question 6

Multiple Choice

You own 800 shares of Bradley Co.stock that is currently priced at $33 a share.Given this price,the option delta for a $35 call option on this stock is 0.66.How many $35 call options do you need to hedge against a -$1 change in the price of the stock?

• A) buy 1,212 options
• B) buy 1,813 options
• C) buy 1,847 options
• D) write 1,212 options
• E) write 1,847 options

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Definitions:

Cognitive-Behavioral

A therapeutic approach that seeks to modify negative thoughts and behaviors by challenging and changing them.

Minnesota Multiphasic Personality Inventory

A comprehensive psychological assessment tool used to diagnose mental disorders and assess personality structure.

Concurrent Validity

The degree to which the results of a particular test or measurement correspond to those of a previously established test or measurement performed at the same time.

Style

A distinctive appearance or manner adopted by individuals or groups, often in the context of fashion, writing, or architecture.