A 6-Month Call Option on ABC Stock Is Priced at $3.60

question 62

Multiple Choice

A 6-month call option on ABC stock is priced at $3.60. The call option delta is 0.76. How will the approximate call option price be computed if the underlying stock price increases by $1?

• A) $3.60
• B) $3.60 - $0.76
• C) $3.60 + $0.76
• D) $3.60 * .76
• E) $3.60 * (1 + .76)

Recognize the importance of critical thinking and evidence-based management in organizational settings.

Identify the skills and traits valued in human relations and organizational behavior management.

Understand the interplay between organizational behavior and the external environment, including economic factors and globalization.

Comprehend the levels of analysis within the organizational behavior model and their foundational importance.

---

Definitions:

Settlement

An agreement reached between parties in a dispute, where usually one party agrees to provide compensation to the other, ending the dispute outside of court.

Creditor

An individual, company, or institution to whom money is owed by another party, the debtor.

Debtor

A person or entity that owes money to another party.