Multiple Choice
A 6-month call option on ABC stock is priced at $2.80. The call option delta is .66. How will the approximate call option price be computed if the underlying stock price increases by $1?
A) $2.80
B) $2.80 − $.66
C) $2.80 + $.66
D) $2.80 × .66
E) $2.80 × (1 + .66)
Correct Answer:
Verified
Correct Answer:
Verified
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