A Stock Is Currently Priced at $22 a Share While

question 51

Multiple Choice

A stock is currently priced at $22 a share while the $30 put option is priced at $5.22.The put option delta is -.25.What is the approximate put price if the stock increases in value to $25?

• A)$3.76
• B)$4.97
• C)$5.08
• D)$5.27
• E)$5.50

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Definitions:

Monopolistic Competitor

A type of market structure where many companies sell products that are similar but not identical, allowing for competition on factors other than price.

Short Run

A period in economics during which at least one factor of production is fixed, focusing on immediate effects in production and pricing.

Long Run

A period in economics where all inputs can be adjusted, allowing for full analysis of production, pricing, and employment levels.

Profit Or Loss

The financial result of a business's operations, calculated as the difference between revenue and expenses.