The Current Price of a Call Is $5 and the Stock

question 33

Multiple Choice

The current price of a call is $5 and the stock is trading at $50.The delta and gamma of the call are 0.5 and 0.05,respectively.If the stock price increases to $50.50,then approximate the new call price using the information given:

• A)$5.24375
• B)$5.25
• C)$5.25625
• D)$5.2625

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