A Put Option on ABC Stock Currently Sells for $4

question 27

Multiple Choice

A put option on ABC stock currently sells for $4.00.The exercise price and the stock price is $60.The put option has a delta of 0.5.If within a short period of time the stock price increases to $60.10,what would be the change in the price of the put option?

• A)increases by $0.05
• B)decreases by $0.05
• C)increases by $0.10
• D)decreases by $0.10

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