Question: 3. You know that a call will finish in-the-money. Based on that single piece of information, you who know which one of the following? The
3. You know that a call will finish in-the-money. Based on that single piece of information, you who know which one of the following? The stock price will equal the strike price at expiration b. The risk-free rate is zero percent. c. A put on the same underlying asset with the same strike and expiration will fish out-of-the- money d. The strike price will exceed the stock price at expiration. e. The price of the call is equal to the price of the put. Which one of the following situations will produce the highest call price, all else constant? a. $29 stock price: $30 strike price b. $41 stock price: $40 strike price $20 stock price: $20 strike price d. $34 stock price: $35 strike price e. $24 stock price; $25 strike price 4. C. a. 5. Which one of the following statements is correct? Both call and put option deltas are always positive. b. Put option deltas are always positive. C. Call option deltas are always positive. d. Both call and put option deltas are always negative. e. All deltas can be positive, negative, or equal to zero
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