The current stock price of Heart, Inc. is $20. Call and put options with exercise prices of $50 and 15 days to maturity are currently trading. Which of these scenarios is most likely to occur if the stock price falls by $1? Call value decreases by $0.76, Put value increases by $0.96 Call value decreases by $0.94, Put value increases by $0.08 Call value decreases by $0.07, Put value increases by $0.89

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The current stock price of Heart, Inc. is $20. Call and put options with exercise prices of $50 and 15 days to maturity are
currently trading. Which of these scenarios is most likely to occur if the stock price falls by $1?
Call value decreases by $0.76, Put value increases by $0.96
Call value decreases by $0.94, Put value increases by $0.08
Call value decreases by $0.07, Put value increases by $0.89
Transcribed Image Text:The current stock price of Heart, Inc. is $20. Call and put options with exercise prices of $50 and 15 days to maturity are currently trading. Which of these scenarios is most likely to occur if the stock price falls by $1? Call value decreases by $0.76, Put value increases by $0.96 Call value decreases by $0.94, Put value increases by $0.08 Call value decreases by $0.07, Put value increases by $0.89
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