You hold a straddle on a stock that you bought a month ago and that still has two months to expiry.Assume the options are European.An unexpected increase of $1 in the price of the stock
A) Changes the value of your straddle by more than $1.
B) Changes the value of your straddle by at most $1.
C) Leaves the value of your straddle unchanged.
D) Any of the above can happen.
Correct Answer:
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Q1: The delta of a call option is
Q2: The current price of a call is
Q3: You hold a portfolio of a long
Q4: Which of the following statements is true?
Q6: A stock is trading at $80.You
Q7: The gamma of an option is
A)The dollar
Q8: Which of the following statements is true?
Q9: The delta of a call option is
Q10: You hold a straddle on a stock
Q11: The current stock price is $50,and
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