Question
A stock is expecting an FDA action on its lead drug application. The week prior to the FDA announcement, the stock's historic volatility increased from
A stock is expecting an FDA action on its lead drug application. The week prior to the FDA announcement, the stock's historic volatility increased from 33% to 45%. If the vega was .15 and the delta was .58, how much did the option premium increase?
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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
