The current price of a call is $5 and the stock is trading at $50. The delta and gamma of the call are 0.5 and 0.05, respectively. If the stock price increases to $50.50, then approximate the new call price using the information given:
A) $5.24375
B) $5.25
C) $5.25625
D) $5.2625
Correct Answer:
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Q2: Which of the following statements is true?
Q3: You hold a portfolio of a long
Q4: The delta of a call option is
Q5: The current stock price is $50,
Q6: You hold a portfolio of a long
Q7: The delta of a call option is
Q8: Which of the following statements is true?
Q9: Which of the following statements is true?
Q10: You are short a put on
Q11: The delta of an option measures, approximately,
A)
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