Given a Set of Variables,the Black-Scholes Option Pricing Formula Has

question 65

Multiple Choice

Given a set of variables,the Black-Scholes option pricing formula has a put option delta of -.154.What is the call delta given these same variables?

• A)-1.154
• B)-.846
• C).846
• D)1.154
• E)The answer cannot be determined based on the information provided.

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Definitions:

Beta

A calculation of the extent to which a stock's price swings in comparison with the overall market.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets.

Unique Risk

Also known as unsystematic risk, it refers to the risk associated with a specific company or industry that can be mitigated through diversification.

Inflation Risk

The danger that the value of financial returns or purchasing power will be eroded as inflation diminishes the value of money over time.