Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The delta of a call option is 0 . 6 . The current price of the call is $ 5 and that of a put

The delta of a call option is 0.6. The current price of the call is $5 and that of a put at the same strike is $4, and the stock is at $100. What is the approximate price of the put if the stock price increases to $100.50?
Question 3 options:
a)
$3.60
b)
$3.80
c)
$4.20
d)
$4.50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance

Authors: Angelico Groppelli, Ehsan Nikbakht

2nd Edition

0812043731, 978-0812043730

More Books

Students also viewed these Finance questions