A 6-Month Call Option on ABC Stock Is Priced at $2.80.The

question 72

Multiple Choice

A 6-month call option on ABC stock is priced at $2.80.The call option delta is 0.66.How will the approximate call option price be computed if the underlying stock price increases by $1?

• A) $2.80
• B) $2.80 - $0.66
• C) $2.80 + $0.66
• D) $2.80 × 0.66
• E) $2.80 × (1 + 0.66)

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Definitions:

Metacognitive Skills

Abilities that enable an individual to understand, control, and manipulate their own cognitive processes, such as planning, monitoring, and evaluating.

Self-Testing

is a method where individuals assess their own knowledge or abilities, often used in learning to enhance retention.

Self-Monitoring

The process of paying attention to one's own behavior and responses in various situations to adjust and control one's actions and presentations based on the social context.

Brain Development

The process of growth and maturation of the brain, involving aspects like neural development, synaptic pruning, and myelination, typically most active during early childhood and adolescence.