Aputoptionwithanexercisepriceof$45istradingfor$3.50.Thecurrentstockpriceis$45.Whatisthemostlikelyeffectontheoption'sdeltaandgammaifthestockpriceincreasesto$50?
A: Bothdeltaandgammawillincrease.
B: Bothdeltaandgammawilldecrease.
C: Onewillincreaseandtheotherwilldecrease.
A: Bothdeltaandgammawillincrease.
B: Bothdeltaandgammawilldecrease.
C: Onewillincreaseandtheotherwilldecrease.
举一反三
- Asoutputquantitiesexpandinanindustrywithadownward-slopinglong-runindustrysupplycurve,whatisthe<em>mostlikely</em>long-runeffectontheequilibriumsellingpriceperunitoftheindustry'soutput? A: Increase,becauseofupwardpressureoninputprices. B: Decrease,becauseoflowerinputcostsperunitofoutput. C: Noeffect,becausesellingpriceisonlyaffectedintheshortrun.
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