Question
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
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.
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Comparative international accounting
Authors: Christopher nobes, Robert parker
9th Edition
273703579, 978-0273703570
