The Delta of a Call Option Is 0

question 8

Multiple Choice

The delta of a call option is 0.6. The current price of the call is $5 and that of a put at the same strike is $4, and the stock is at $100. What is the approximate price of the put if the stock price increases to $100.50?

• A) $3.60
• B) $3.80
• C) $4.20
• D) $4.50

Identify the bases for market segmentation and their application.

Recognize the influence of social variables on buying behavior.

Understand the role and impact of social classes in society.

Grasp the relevance and application of different marketing strategies, including distribution and promotion decisions.

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Definitions:

Price/Earnings Ratio

A valuation measure comparing the current share price of a company to its per-share earnings, often used to assess if a stock is over or undervalued.

Cash Flow Per Share

A measure of a firm's financial flexibility, calculated as operating cash flow divided by the number of outstanding shares.

Prohibited

Actions or activities that are not permitted or allowed by law, regulation, or policy.

Basic Earnings

Earnings calculated by dividing the net income by the total number of outstanding shares, showing the profit earned per share.