A Stock Is Currently Priced at $26 a Share While

question 14

Multiple Choice

A stock is currently priced at $26 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 $27?

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

---

Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, but can sometimes lead to cognitive biases.

Mnemonic Devices

Techniques a person can use to help them improve their ability to remember something, often by associating it with something more familiar or patterning.

Cognitive Shortcuts

Heuristic methods or simple strategies used by the human mind to make decisions or solve problems quickly.

Heuristics

Mental shortcuts or rules of thumb that facilitate fast and efficient decision-making, although not always leading to the perfect solution.