Question: Explain what would happen to the put option s current value in each of the following cases. Treat each one as if it occurs in

Explain what would happen to the put options current value in each of the following cases. Treat each one
as if it occurs in a vacuum. For full credit, you can either calculate a new price (and show whether it is
above, the same, or below the old one), or you can explain your answer using option Greeks.
1. If the stock prices went up or down by 6% instead of +15%/-12%.
2. If you were considering a put option with a strike price of $160 instead of $140.
3. If you started today but only had 2 time steps instead of 3.
3

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