Portfolio a Consists of 400 Shares of Stock and 400

question 47

Multiple Choice

Portfolio A consists of 400 shares of stock and 400 calls on that stock.Portfolio B consists of 500 shares of stock.The call delta is 0.5.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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Definitions:

Esophagogastroduodenoscopy

A diagnostic procedure that allows a physician to inspect the inside of the esophagus, stomach, and initial part of the small intestine using a flexible tube with a light and camera.

Endoscopic Retrograde Cholangiopancreatography

A diagnostic and therapeutic procedure that combines endoscopy and fluoroscopy to examine and treat problems in the bile and pancreatic ducts.

Esophagus

The muscular tube connecting the throat (pharynx) to the stomach, responsible for moving swallowed food and liquids to the stomach through peristaltic movements.

Bronchoscopy

A procedure that allows doctors to look at the airway through a thin viewing instrument called a bronchoscope.