You Own 1,500 Shares of ABC Stock That Is Currently

question 3

Multiple Choice

You own 1,500 shares of ABC stock that is currently priced at $27 a share.Given this price,the option delta for a $25 call option on this stock is .724.How many $25 call options do you need to hedge against a -$1 change in the price of the stock?

• A)buy 1,500 options
• B)buy 2,482 options
• C)write 1,500 options
• D)write 2,072 options
• E)write 3,295 options

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Definitions:

Acute Care

Acute care involves short-term medical treatment, typically in a hospital setting, for patients experiencing severe, often sudden health problems or injuries.

Expensive Healthcare

The high cost associated with medical services and treatments, often leading to financial strain for individuals and healthcare systems.

Surgi-Centers

Ambulatory surgery centers that provide outpatient surgical services.

Urgi-Centers

Healthcare facilities that provide immediate care services for urgent but non-life-threatening health issues, offering an alternative to emergency room visits.