Money long put position if implied volatility increases

Assignment Help Financial Management

Reference no: EM132033347

What happens to the Delta and Vega of the at-the-money long put position if implied volatility increases? What happens to the Gamma of the at-the-money long put position if the implied volatility increases? You can use analytical formulas or options calculator, for example Bloomberg options calculator.

Reference no: EM132033347

Questions Cloud

Develop new ways of serving customers that remain : What strategic insights might be gained from develop new ways of serving customers that remain untapped by your competitors.

Companies avoid faulty e-commerce strategies : How might the value process frameworks described in companies avoid faulty e-commerce strategies?

How much should dustin pay for this investment today : How much should Dustin pay for this investment today if he wishes to earn a 8 percent annual rate of return?

Three-step process for solving an ethical dilemma : Consider this three-step process for solving an ethical dilemma: (1) analyze the consequences; (2) analyze the actions; (3) make a decision.

Money long put position if implied volatility increases : What happens to the Delta and Vega of the at-the-money long put position if implied volatility increases?

Television do-it-yourself program together : Tim the Toolman and his assistant Al host a cable television do-it-yourself program together. Although from the show it would appear that the two

What would be SSCs estimated cost of equity : What would be SSC's estimated cost of equity if it changed its capital structure to 50% debt and 50% equity?

Option of choosing between brand-based and offering-based : Using the First Principle #4 of Marketing what can firms do when given the option of choosing between Brand-based and Offering-based SCA and Relationships-based

Resolve conflict or respond to conflict : How would personality differences affect how individuals view conflict, attempt to resolve conflict or respond to conflict?

User Account

All Pages