An Architect Estimates a Bid of $168,400$ the Maximum Rate Above the Estimate Is

question 195

Short Answer

An architect estimates a bid of $ $168,400$ . The maximum rate above the estimate is $13$ %.
Find the maximum acceptable bid. Round your answer to the nearest dollar.
$__________

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Definitions:

Option Value

The inherent value of an option contract, determined by factors like the underlying asset's price, the strike price, and the time until expiration.

Gamma

The curvature of an option pricing function (as a function of the value of the underlying asset).

Option Price

The price at which the holder of an options contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset or security.

Hedge Ratio

A ratio used in hedging that compares the value of a position protected through a hedge with the size of the entire position itself.