You are evaluating a put option on $KO$ with a strike price of $$129.$

If $KO$ is able to launch a new beverage line, the price per share will go up to $$177.$ Otherwise, the price will go down to $$79.$ Let's assume that these are the only two possible scenarios. PEP shares today are trading at $$128.$

What is the hedge ratio $($delta$)$ of this put option?

Please round your answer to the nearest three decimals $($i$.$e$.0\mathrm{.}414).$

You Answered

Correct Answer

$-0\mathrm{.}51$ margin of error $\frac{+}{-}2\%$

Please keep in mind the formula to calculate the hedge ratio:

$)u)d)u)d$