Question
Buffelhead's stock price is $216 and could halve or double in each six-month period. A one-year call option on Buffelhead has an exercise price of
Buffelhead's stock price is $216 and could halve or double in each six-month period. A one-year call option on Buffelhead has an exercise price of $163. The interest rate is 21% a year.
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c-1. What is the option delta when a call is certain to be exercised?
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c-2. What is the option delta when a call is certain not to be exercised?
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The Handbook Of Municipal Bonds
Authors: Frank J. Fabozzi, Sylvan G. Feldstein
1st Edition
0470108754, 9780470108758
