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A Call Option on the ABCD Stock, with an Exercise

Question 1

Multiple Choice

A call option on the ABCD stock, with an exercise price of $50, is selling for $5.00 and the stock price is also $50. The call option has a delta of 0.3. If within a short period of time the stock price increases to $52, what would be the change in the price of the call option?


A) increases by $0.60
B) decreases by $0.60
C) increases by $2.00
D) decreases by $2.00

Correct Answer:

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