All Else the Same, as the Delta of a Stock

question 31

Multiple Choice

All else the same, as the delta of a stock index option used to hedge a stock portfolio increases, the number of options needed to hedge the portfolio will __________.

• A) Increase
• B) Decrease
• C) not change
• D) increase only if the delta is less than 0.5
• E) increase only if the delta is greater than 0.5

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Definitions:

Nursing Perspective

The unique viewpoint that nurses bring to healthcare, focusing on patient care, holistic health, and the integration of individuals’ needs with healthcare delivery.

Human Development

The process of growth and change that every person undergoes from birth to death, encompassing physical, cognitive, and socioemotional growth.

Well-Being

A state of being comfortable, healthy, or happy.

Reed

A tall, slender-leaved plant of the grass family that grows in water or on marshy ground.