A stock is trading at $132. A one-month call with a strike of $125 costs $9.773 and has a theta of . The passage of one trading day ( years) will cause the call value to, approximately,
A) Rise by .
B) Fall by
C) Fall by .
D) Fall by
Correct Answer:
Verified
Q25: A stock is trading at $20.
Q26: Gamma is a risk measure that is
Q27: You expect a sizable jump in the
Q28: The gamma of a put is typically
Q29: The absolute value of theta is highest
Q31: Consider options written on a non-dividend-paying stock.
Q32: A stock is trading at $20. A
Q33: Theta is always negative except possibly for
Q34: You hold a portfolio of a long
Q35: The price of a European call option
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents