A portfolio consists of 100 shares of stocks and 1500 calls on those shares. If the coverage
Fantastic news! We've Found the answer you've been seeking!
Question:
A portfolio consists of 100 shares of stocks and 1500 calls on those shares. If the coverage ratio for the call is 0.7, what would be the dollar change in the portfolio's value in response to a $1 decline in the stock price?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date: