How is the impact of a change in the underlying stock price

Reference no: EM133331727

Questions:

1. How is the impact of a change in the underlying stock price on the value of a stock option measured?

2. An increase in an option strike price will have what type of effect on the price of a call option?

3. Are call options deltas always positive or always negative?

4. Using a set of variables, the Black-Scholes option pricing formula generates a call option delta of .614. Given these same variables, what's the put delta?

5. A stock has a current price of $65 a share with a put option priced at $6.24. The option delta of the put is -.31. What's the put's approximate price if the stock increases in value to $80?

Reference no: EM133331727

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