Question

Consider again the at-the-money call option on Roslin Robotics evaluated in Problem 11. What is the impact on the value of this call option of each of the following changes (evaluated separately)?
a. The stock price increases by $1 to $61.
b. The volatility of the stock goes up by 1% to 31%.
c. Interest rates go up by 1% to 6%.
d. One month elapses, with no other change.
e. The firm announces a $1 dividend, paid immediately.



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  • CreatedAugust 06, 2014
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