The current stock price is \$80.Call ,and ,put, options, with ,exercise ,prices, of $50 and 3 days to maturity are currently trading.
What is more likely effect to call and put prices, respectively, if the stock price decreases by \$1?
No Calculation. Hint: sketch indicative payoff and price graphs to observe the price points.
A. Decrease by \$0.94.Increase by \$0.08
B. Decrease by \$0.76.Increase by \$0.96
C. Decrease by \$0.07. Increase by \$0.89