A Portfolio Which Has a Delta Value of -0

question 7

Multiple Choice

A portfolio which has a delta value of -0.25 is:

• A) a bullish portfolio
• B) a neutral portfolio
• C) a bearish portfolio
• D) a high-volatility portfolio
• E) None of these answers are correct.

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Definitions:

Adjustment

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Percent of Sales Method

A financial forecasting tool used to estimate certain balance sheet and income statement accounts based on a projected sales figure.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and are written off as a bad debt expense.

Credit Sales

Sales where the customer is allowed to pay for the product or service at a later date, extending credit.