The beta of a call option on General Motors is greater than the beta of a share

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“The beta of a call option on General Motors is greater than the beta of a share of General Motors.” True or false?

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Investments

ISBN: 978-0071338875

8th Canadian Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter

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Question Posted: Jun 21, 2015 05:36 AM

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The beta of a call option on General Motors is greater than the beta of a share

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True The call option has an elasticity of greater than 10 Therefore ...View the full answer

Investments

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