A Share Sells for $40, and Its Call Option Sells

question 62

Multiple Choice

A share sells for $40, and its call option sells for $4. The hedge ratio is .8 and the share price rises by 10%. The call option price should

• A) fall by 20%.
• B) rise by 80%.
• C) rise to $4.80.
• D) fall by $3.20.

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Definitions:

Social Structure

A pattern of organized relationships among groups of people within a society that shapes behaviors and interactions.

Gender Role Socialization

Gender Role Socialization is the process by which individuals learn and adopt the behaviors, values, and norms associated with their gender, as prescribed by societal expectations and cultural norms.

Patriarchy

A system of society where males predominantly possess the key power, steering political governance, ethical leadership, societal advantages, and ownership of assets.

Means of Production

Refers to the facilities, resources, and tools used to produce goods and services, which in Marxist theory are owned by the capitalist class.