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
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?
What type of option is this? Explain your answer.
With a delta of .78, is this option ITM, ATM or OTM? Explain your answer.
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Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
