If the Delta of a Call Option Is 0

question 61

Multiple Choice

If the delta of a call option is 0.6, calculate the delta of an equivalent put option.

• A)0.6
• B)0.4
• C)−0.4
• D)−0.6

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Definitions:

Working Capital Financing

This refers to short-term loans or credit facilities used by a company to finance its daily operations and manage its current assets and liabilities.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to vendors or suppliers for goods and services received but not yet paid for.

CCC

Refers to the Cash Conversion Cycle, a metric that gauges how efficiently a company manages its inventory, receivables, and payables to generate cash.

Peak Borrowing Needs

The maximum amount of capital a business or individual will need to borrow to meet its financial obligations.