You Have Entered into a Call Option Contract for 1

question 27

Multiple Choice

You have entered into a call option contract for 1 period. The stock is selling for $28, you borrowed $12 at 8% and the delta is 0.6. What is the value of the call?

• A) $8.89
• B) $4.80
• C) $5.69
• D) $9.60

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Definitions:

Gigantism

A condition characterized by excessive growth and height significantly above average due to an overproduction of growth hormone.

Pineal Body

A small endocrine gland in the brain that produces melatonin, a hormone that regulates sleep patterns.

Melatonin

A hormone produced by the pineal gland in the brain, responsible for regulating sleep-wake cycles.

Biological Clock

An internal mechanism in living organisms that controls the timing of various biological functions, such as sleep-wake cycles, reproductive cycles, and metabolism.