A call option on ABCD stock,with an exercise price of $50,will either be worth $12 or worthless.The call option has a delta of 0.3.What is the binomial spread of possible stock prices?
A)low of $22 and high of $62
B)low of $50 and high of $62
C)low of $58 and high of $62
D)low of $38

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The delta of a call option is the expected change in the option's price for a $1 change in the underlying stock price. In this case, the delta is 0.3, which means that the option's price is expected to increase by $0.30 for every $1 increase in the stock price.Since the call option is worth $12 when the stock price is $50, we can use the delta to estimate the option's price at other stock prices. For example, if the stock price increases to $51, we would expect the option's price to increase by $0.30, to $12.30. Similarly, if the stock price decreases to $49, we would expect the option's price to decrease by $0.30, to $11.70.The binomial spread of possible stock prices is the range of stock prices that are possible at the expiration of the option. In this case, the binomial spread is $22 to $62. This is because the lowest possible stock price is $50 - $12 = $38, and the highest possible stock price is $50 + $12 = $62.

A Call Option on ABCD Stock,with an Exercise Price of $50,will