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The current stock price of a company is USD 80. You are analyzing the potential impact of this decline on both a call option and a put option. stock. Both options have an exercise price of USD 50 and a time to maturity of 5 days. Which of these scenarios is most likely to occur if the stock price falls by USD 1?
| Scenario | Call Value Change | Put Value Change |
|---|---|---|
| A | Decreases by USD 0.07 | Increases by USD 0.89 |
| B | Decreases by USD 0.07 | Increases by USD 0.01 |
| C | Decreases by USD 0.94 | Increases by USD 0.01 |
| D | Decreases by USD 0.94 | Increases by USD 0.89 |
A
Scenario A
B
Scenario B
C
Scenario C
D
Scenario D