You Want to Hedge a Stock Portfolio with a Beta

question 77

Multiple Choice

You want to hedge a stock portfolio with a beta 0.95 and a value of $150 million with S&P 500 call options. The options have a strike price of 1,100 and a delta of 0.62. If the index is currently trading at 1,128, how many options should you write?

• A) 1,996
• B) 2,089
• C) 2,147
• D) 2,193
• E) 2,038

Understand the concept of drug tolerance and its physiological implications.

Recognize the function of neurotransmitters and how drugs can alter their activity.

Identify the classifications and effects of different psychoactive drugs, including stimulants, depressants, and opiates.

Comprehend the biological and psychological theories of dreaming.

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Definitions:

Investment

The allocation of resources, such as capital or time, in expectation of generating future returns.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account its risk level.

Target Cost

The desired cost of a product as determined by its expected selling price minus desired profit, aimed to ensure competitiveness and profitability.

Preventive Maintenance

Maintenance activities carried out regularly on equipment to prevent unexpected failures.