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3. (30 points) For a European option on a stock whose price is 50, you are given: (a) The option's value is 16.98 (b) -0.9086
3. (30 points) For a European option on a stock whose price is 50, you are given: (a) The option's value is 16.98 (b) -0.9086 (c) 0.0573 d) 0.0063 measured in days. (1) Estimate the value of the option if the stock price goes to 55 in 2 days using delta approximation (2) Estimate the value of the option if the stock price goes to 55 in 2 days using delta- gamma approximation. (3) Estimate the value of the option if the stock price goes to 55 in 2 days using delta- gamma-theta approximation
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