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Igoryamba
3 years ago
5

The delta of a call option on a non-dividend-paying stock is 0.4. What is the delta of the corresponding put option?

Business
1 answer:
denis-greek [22]3 years ago
6 0

Answer:

the delta of the corresponding put option is -0.6

Explanation:

Since it is given that that the delta of a call option is 0.4

So, the delta of the corresponding put option is

As we know that

Delta of the put option = Delta of a call option - 1

= 0.4 - 1

= -0.6

Hence, the delta of the corresponding put option is -0.6

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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