Given a Set of Variables,the Black-Scholes Option Pricing Formula Has

question 1

Multiple Choice

Given a set of variables,the Black-Scholes option pricing formula has a call option delta of .496.What is the put delta given these same variables?

• A)-1.496
• B)-.504
• C).504
• D)1.496
• E)The answer cannot be determined based on the information provided.

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Definitions:

Linear Perspective

A technique in art and photography that creates the illusion of depth on a flat surface, using converging lines.

Retinal Disparity

The slight difference between the images projected onto each eye, contributing to depth perception in binocular vision.

Relative Size

Relative size is a visual perception cue that allows one to determine how close or far away an object is based on its size in relation to other objects.

Interposition

A visual cue used to perceive depth, where one object partially covers another, indicating that the covering object is closer.