Question
Amazon stock sells for $3,200. The price of a call option on the stock is $40 and the delta of the call is 0.6. If
Amazon stock sells for $3,200. The price of a call option on the stock is $40 and the delta of the call is 0.6. If shortly afterward, the price of Amazon stock drops by $4, what would happen to the price of the call?
Group of answer choices
It would rise to about $41.60.
It would drop to about $38.40.
It would rise to about $42.40.
It would drop to about $37.60.
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick, Ayako Yasuda
3rd Edition
1119490111, 978-1119490111
