Question: Current Stock Price (S) $50.00 Standard Dev - Annual (s) 30.00% Riskfree Rate - Annual ( Rf ) 0.12% Exercise Price (X) $45.00 Time To

Current Stock Price (S)	$50.00
Standard Dev - Annual (s)	30.00%
Riskfree Rate - Annual (_Rf)	0.12%
Exercise Price (X)	$45.00
Time To Maturity - Years (T)	0.50

Outputs
PUT PRICE (P)	$1.99
Delta	-0.272
Gamma	0.031
Theta	-3.504
Vega	11.742
Rho	-7.803

A.If the Implied Volatility increases by 2% (from 30% to 32%), what will the new price of the option be?

B.If the Implied Volatility decreases by 2% (from 30% to 28%), what will the new price of the option be?

C.If the price of the stock increases by $0.50, what will the new price of the option be?

D.If the price of the stock decreases by $0.50, what will the new price of the option be?

E.If you owned 100 contracts of this option, and you wanted to delta hedge it, what would you do?

F.If the price of the stock doesnt change, the implied volatility doesnt change, what will the price of the option be one week later?

G.One week goes by. The price of the stock is 49.50, and the implied volatility is 32%. What is your estimate of the price of the option now? Justify your answer.

Show the calculation of various question.

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