Consider a Position in Options on a Particular Stock

question 13

Multiple Choice

Consider a position in options on a particular stock.The position has a delta of 12 and the stock price is 10.Which of the following is the approximate relation between the change in the portfolio value in one day,dP,and the return on the stock during the day,dx

• A) dP=12dx
• B) dP=1.2dx
• C) dP=120dx
• D) dP=22dx

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Definitions:

Nuclear Changes

Transformations at the atomic level, including reactions in nuclear power generation and atomic bombs, which can alter the composition of atomic nuclei.

Conservation

The preservation, protection, or restoration of the natural environment, natural ecosystems, vegetation, and wildlife.

Nuclear Fission

A nuclear reaction in which the nucleus of an atom splits into smaller parts, releasing a large amount of energy.

Nuclear Fusion

A nuclear reaction where two light atomic nuclei combine to form a heavier nucleus, releasing energy in the process.