Revision 1 Advanced Investment Appraisal

c. increase in option value is very small as the price of the stock decreases. d. increase in option value is very small as the price of the stock increases (difficult, L.O. 2, Section 1, d) The Black-Scholes option-pricing formula demonstrates how option values vary with stock price. If an option is very far in the money the: a. option value ... ................
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