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)

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Definitions:

Broca's Aphasia

A condition resulting from damage to a specific area of the frontal lobe of the brain, characterized by difficulty in producing speech.

Apraxia

A motor disorder caused by damage to the brain (in areas involved in planning the motor movements), resulting in difficulty with executing voluntary muscle movements, despite having the desire and the physical capability to perform the movements.

Parietal Lobe

A region of the cerebral cortex that plays a key role in processing sensory information from various parts of the body, spatial navigation, and the integration of sensory input with visual information.

Temperature

A measure of the thermal energy of an object or environment, indicating how hot or cold it is.