A Stock Is Trading at $20 $- 0.50$ A Decrease of 10 Basis Points in the Interest Rate

question 26

Multiple Choice

A stock is trading at $20.A one-month put with a strike of 19 is valued at $0.360 and has a rho of $- 0.50$ .A decrease of 10 basis points in the interest rate changes the put value by

• A) \(- 0.005\)
• )
• B) \(+ 0.005\)
• )
• C) \(- 0.05\)
• D) \(+ 0.0005\)
• )

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