Suppose Ralph's Stock Price Is Currently $50

question 34

Multiple Choice

Suppose Ralph's stock price is currently $50. In the next six months it will either fall to $30 or rise to $80. What is the option delta of a call option with an exercise price of $50?

• A)0.375
• B)0.500
• C)0.600
• D)0.750

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Definitions:

Substitute Good

A product or service that can be used in place of another to satisfy consumer demand, offering an alternative choice.

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Market for Cocoa

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United Auto Workers

is a labor union representing workers in the automotive industry in the United States, focused on advocating for worker rights and benefits.