A Stock Is Currently Priced at $22 a Share While

question 30

Multiple Choice

A stock is currently priced at $22 a share while the $26 put option is priced at $5.22. The put option delta is −.25. What is the approximate put price if the stock increases in value to $25?

• A)$3.76
• B)$4.47
• C)$5.08
• D)$5.27
• E)$5.50

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Definitions:

Selective Attention

The process of focusing on a particular object in the environment for a certain period while ignoring irrelevant data that is simultaneously occurring.

Structuralism

An approach in psychology and other social sciences focusing on analyzing the structure of the human mind and its perceptions, rather than its content.

Behaviorism

Behaviorism is a theory of learning based on the idea that all behaviors are acquired through conditioning and that environmental interactions shape behavior, largely ignoring mental states or innateness.

Developmental Psychologists

Professionals who study the growth and development of the human mind and behavior across the lifespan.