Approximate put price


A stock is currently priced at $26 a share while the $30 put option is priced at $5.22. The put option delta is -.25 What is the approximate put price if the stock increases in value to $27?

a) $3.76

b) $4.97

c) $5.08

d) $5.27

e) $5.50

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Finance Basics: Approximate put price
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