Question: 1 pts D Question 4 You are evaluating a put option on MSFT with a strike price of $128. If MSFT is able to launch
1 pts D Question 4 You are evaluating a put option on MSFT with a strike price of $128. If MSFT is able to launch a new Al-based-virtual-assistant, the price per share will go up to $147. Otherwise, the price will go down to $111. Let's assume that these are the only two possible scenarios. MSFT shares today are trading at $1. What is the hedge ratio (delta) of this put option? Please round your answer to the nearest two decimals (i.e. 0.44). Blank Spreadsheet-4.xlsx
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
