Question
A portfolio consists of 100 shares of stock and a 1500-share call option on that stock. If the delta of the call option is 0.70,
A portfolio consists of 100 shares of stock and a 1500-share call option on that stock. If the delta of the call
option is 0.70, what would be the dollar change in value of the portfolio in response to a $1 decline in the
stock price?
i dont know how to solve this
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
