The Delta of a Call Option Is 0

question 19

Multiple Choice

The delta of a call option is 0.6.The current price of the call is $5 and the stock is at $100.What is the approximate price of the call if the stock price increases to $100.50?

• A)$4.70
• B)$5.30
• C)$5.60
• D)$8.00

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Definitions:

Promissory Note

A financial document in which one party promises to pay another party a definite sum of money at a future date or on demand.

Interest Due

The amount of interest payment that is owed but not yet paid by a borrower to a lender at a given point in time.

Intermediate Calculations

Calculations performed between the initial and final stages of a financial or statistical analysis to derive a specific outcome or insight.

Final Answer

The ultimate conclusion or decision reached after consideration.