The Black-Scholes Hedge Ratio for a Long Call Option Is

question 74

Multiple Choice

The Black-Scholes hedge ratio for a long call option is equal to ________.

• A) N(d₁)
• B) N(d₂)
• C) N(d₁) − 1
• D) N(d₂) − 1

Grasp the concept and significance of economic communities in global trade.

Analyze the advantages and disadvantages of standardization versus adaptation strategies in international markets.

Know the key environmental factors that influence consumer purchase ability and behavior.

Identify types of companies that experience countercyclical sales.

---

Definitions:

Supply Equation

A mathematical representation showing the relationship between the quantity of goods suppliers are willing to produce and various influencing factors like price and production costs.

Per-Unit Tax

A tax imposed on a product based on a fixed amount for each unit sold, affecting the supply curve by increasing the cost of production.

Units Sold

The number of individual items or products that have been sold over a specific period.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to price or other factors.