A 6-month call option on ABC stock is priced at $3.60. The call option delta is 0.76. How will the approximate call option price be computed if the underlying stock price increases by $1?
A) $3.60
B) $3.60 - $0.76
C) $3.60 + $0.76
D) $3.60 * .76
E) $3.60 * (1 + .76)
Correct Answer:
Verified
Q1: Which one of the following situations will
Q9: Which one of the following variables is
Q22: Which one of the following situations will
Q23: Which two of the following are key
Q25: Stock prices and call option prices are:
A)unrelated.
B)negatively
Q28: Which two of the following are the
Q29: Which of the following are typical characteristics
Q29: An employee stock option is which one
Q35: All else constant,which one of the following
Q36: You own shares of AZT stock. Which
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