You Own 1,200 Shares of Banner Co

question 63

Multiple Choice

You own 1,200 shares of Banner Co.stock that is currently priced at $42 a share.Given this price,the option delta for a $40 call option on this stock is .664.How many $40 call options do you need to hedge against a -$1 change in the price of the stock?

• A)buy 1,613 options
• B)buy 1,713 options
• C)buy 1,8.7 options
• D)write 1,713 options
• E)write 1,807 options

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Definitions:

Triage

The method of establishing the treatment priority for patients according to how severe their condition is.

Malignant

Refers to cells or tumors that are cancerous and have the potential to spread to other parts of the body.

Antitussive

A medication or treatment designed to suppress or relieve coughing.

Diaphoresis

Excessive sweating, often as a result of illness or stress.