The delta of a call option on a firm's assets is 0.767.This means that a $75,000 project will increase the value of equity by:
A)$38,350.
B)$45,336.
C)$57,525.
D)$64,627.
E)$65,189.

Name: The delta of a call option on a firm's assets is 0.767.This means that a $75,000 project will increase the value of equity by: A)$38,350. B)$45,336. C)$57,525. D)$64,627. E)$65,189.
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Quizplus · Accepted Answer

Increase in equity value = $75,000 × 0.767 = $57,525

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