Portfolio a Consists of 150 Shares of Stock and 300

question 19

Multiple Choice

Portfolio A consists of 150 shares of stock and 300 calls on that stock.Portfolio B consists of 575 shares of stock.The call delta is 0.7.Which portfolio has a higher dollar exposure to a change in stock price?

• A)Portfolio B.
• B)Portfolio A.
• C)The two portfolios have the same exposure.
• D)A if the stock price increases and B if it decreases.
• E)B if the stock price decreases and A if it increases.

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