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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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Q-57. The call option is deep in-the-money and must have a delta close to one. The put option is deep out-of-the-money and will have a delta close to zero. Therefore, the value of the in-the-money call will decrease by close to USD 1, and the value of the out-of-the-money put will increase by a much smaller amount close to 0.

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