Multiple Choice
A put option is currently selling for $6 with an exercise price of $50. If the hedge ratio for the put is −0.30, and the stock is currently selling for $46, what is the elasticity of the put?
A) 2.76
B) 2.30
C) −7.67
D) −2.76
E) −2.30
Correct Answer:
Verified
Correct Answer:
Verified
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