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The Delta of a Call Option on a Firm's Assets

Question 12

Multiple Choice

The delta of a call option on a firm's assets is.804. This means that a $60,000 project will increase the value of equity by:


A) $11,760.
B) $21,336.
C) $48,240.
D) $74,627.
E) $108,240.

Correct Answer:

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