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How much does the value of the call option fall by

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Reference no: EM132950834

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Q1. What is the price of a call option on a stock ticker with the following inputs:

Strike price = $300

Stock price = $158

Risk free rate = 0.1%

Maturity = 6 months

Volatility = 65%

A. $135.50

B. $17.62

C. $3.65

D. $1.85

E. $15.53

Q2. Using the ticker date of the call option price above. Suppose this stock falls by 25% (from $158.00 per share to $118.50). How much does the value of the call option fall by?

A. -55%

B. -40%

C. -15%

D. -60%

E. -81%

Reference no: EM132950834

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