3.1 Delta: a. An option is trading at $3.45. If it has a delta of 78, what would the price of the option be if the underlying increases by $.75? What would the price of the option be if the underlying decreases by $.55? b. What type of option is this? Explain your answer. c. With a delta of.78, is this option ITM, ATM or OTM? Explain your answer. 3.2 Delta: a. An option is trading at $5.03. If it has a delta of - 56, what would the price of the option be if the underlying increases by $.75? What would the price of the option be if the underlying decreases by $.55? b. What type of option is this? Explain your answer. c. With a delta of - 56, is this option ITM, ATM or OTM? Explain your answer. 3.3 Delta: Look at the following chart. Rank the options in terms of moneyness, from deepest ITM to deepest . Option Type Delta A Call 89 B Call 12 C Put-75 D Call 16 E Call 35 F Put -50