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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