A Call Option That Sells for $7

question 20

Multiple Choice

A call option that sells for $7.18 has a delta of 0.63. If the stock price decreases by $1.50, what is your estimate of the new call price?

• A) $6.86
• B) $6.24
• C) $6.55
• D) $6.37
• E) $6.64

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Definitions:

Microorganism

A microscopic organism, such as a bacteria, virus, or fungus, that can only be seen under a microscope.

Chloroplasts

Organelles found in the cells of green plants and photosynthetic algae that conduct photosynthesis.

Classifications

Systems of categorizing or organizing items into groups based on shared characteristics or criteria.

Exudative Skin Condition

A dermatological condition characterized by the oozing of fluid or pus from the skin, often due to inflammation or infection.