Explain computation of the value of the portfolio

Reference no: EM13153417

During a small time period (say one day), what is the change in the option that you expect if the underlying change $1 dollar? (d) If you made an error of .05 in the computation of your volatility and an error of .01 in the computation of the short interest rate, approximately what error do you expect to make in the computation of the value of the portfolio?

Reference no: EM13153417

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