The Current Stock Price Is $50, and a Put Is $- 0.42858$

question 22

Multiple Choice

The current stock price is $50, and a put is priced at $3.59201. If the stock rises to $50.10, the price of the put will be $3.549152 and if the stock drops to $49.90, the price of the put will be $3.635261. What is the best estimate of the delta of the put?

• A) \(- 0.42858\)
• B) \(- 0.43251\)
• C) \(- 0.43055\)
• D) Cannot be calculated from the given data.

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Definitions:

Mortgage

A loan secured by the collateral of specified real estate property, where the borrower is obliged to make a predetermined set of payments to the lender.

Capital

The funds used to acquire the natural and human resources needed to provide products; also called financial resources.