What the impact will be on the option price

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Problem 1: Explain what the impact will be on the option price and short position in the options for each of the following scenarios:

a. The stock price increases by R0.10 with no other changes (influence on option price and delta).
b. The volatility increases by 0.75% with no other changes.
c. The interest rate increases by 1% with no other changes.
d. One day goes by without changes in the stock price or volatility.

Reference no: EM132941082

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