A European equity option contract has a strike price of $170, an expiration date of 30-Feb-2020, and a delta of -0.596. Which of the following is NOT true about this option contract?

a) If the stock price goes up by a dollar, the option price will fall by 59.6 cents;

b) The holder of the option has the right to buy the stock for $170 per share;

c) The holder can only exercise the option on 30-Feb-2020;

d) If the stock price goes up to $175, the holder of better off not exercising the option at expiration

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Answer B The holder of the option has t... View the full answer