If a stock price increased by 76.5 percent and the leverage for the option was calculated to be 1.5,the option price increased by 25.5 percent.

Question

Quizplus · Accepted Answer

The increase in stock price (76.5%) does not directly determine the increase in option price, as it also depends on other factors such as implied volatility and time to expiration. Therefore, we cannot accurately predict the increase in option price solely based on the increase in stock price and the leverage factor of 1.5.

If a Stock Price Increased by 76