A Put Option on ABC Stock Currently Sells for $4

question 69

Multiple Choice

A put option on ABC stock currently sells for $4.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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Definitions:

Maslow's Needs

A hierarchy of human needs proposed by Abraham Maslow that describes motivational factors from basic physiological needs to self-actualization.

Direction

Guidance or supervision provided to perform tasks or to make decisions and progress in activities or objectives.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.

Maslow's Hierarchy

A psychological theory proposing a five-tier model of human needs, ranging from basic physiological needs to higher-level self-actualization needs, influencing motivation.