An Intentional Tort Exists Under Which of the Following Circumstances

question 7

Multiple Choice

An intentional tort exists under which of the following circumstances?

• A) The act that was committed is prohibited by Common Law.
• B) The act was intentional.
• C) The act was outside of a contract or trust.
• D) All of the responses are correct.

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Definitions:

Hedge Ratios

Financial ratios used to calculate the optimal amount of exposure needed to hedge (protect against risk) a position or portfolio.

Long Calls

An option strategy involving the purchase of call options, giving the buyer the right, but not the obligation, to purchase a security at a specified price within a certain time frame.

Delta

In finance, a measure of the sensitivity of an option's price to a change in the price of the underlying asset, indicating how much the price of the option is expected to move based on a $1 change in the underlying asset.

Underlying Asset

The financial asset upon which a derivative's price is based, such as stocks, bonds, commodities, or currencies.