Which of the following is are true? price a. deltas on calls are negative in the underlying stock b, deltas on puts are negative in response to changes call hedge ratio does not change ratios than out of money call options have higher hedge e, none of the above are true Use the following information to answer the next question. Price of Put T X Option 5 50 20 B 1.0 50 25 Which put option is written on the stock with the lower price c, not enough information date one year from 2 A call option on Juniper Co stock with an exercise price of s30 and an price of S30 and an now is worth $8.50 today. A put option on Juniper Corp. stock with an exercise Juniper expiration date one year from now is worth S3.75 today. The risk-free rate fretum is 5% and Corp. pays no dividends. The stock should be worth what today? 5.57 30 t so vi the stock price of Comet Inc. is c s30. The stock price a year from now will be either so or s10 with equal probabilities. The interest rate at which investors can borrow is 5%. Using the bingo option pricing model (OPM), the value of a call option with an exercise price d an expiration date one 100 year from now should be worth what? 2You are considering purchasing a put option on a stock with a current price of S39. The exercise price i $35, and the price of the corresponding call option is s7. According to the put-call parity theorem, if the risk-free rate of interest is 4%, and there are 60 days until expiration, the value of the put should be what Which of the following is are true? price a. deltas on calls are negative in the underlying stock b, deltas on puts are negative in response to changes call hedge ratio does not change ratios than out of money call options have higher hedge e, none of the above are true Use the following information to answer the next question. Price of Put T X Option 5 50 20 B 1.0 50 25 Which put option is written on the stock with the lower price c, not enough information date one year from 2 A call option on Juniper Co stock with an exercise price of s30 and an price of S30 and an now is worth $8.50 today. A put option on Juniper Corp. stock with an exercise Juniper expiration date one year from now is worth S3.75 today. The risk-free rate fretum is 5% and Corp. pays no dividends. The stock should be worth what today? 5.57 30 t so vi the stock price of Comet Inc. is c s30. The stock price a year from now will be either so or s10 with equal probabilities. The interest rate at which investors can borrow is 5%. Using the bingo option pricing model (OPM), the value of a call option with an exercise price d an expiration date one 100 year from now should be worth what? 2You are considering purchasing a put option on a stock with a current price of S39. The exercise price i $35, and the price of the corresponding call option is s7. According to the put-call parity theorem, if the risk-free rate of interest is 4%, and there are 60 days until expiration, the value of the put should be what
