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A Stock Is Trading at $20 −0.50- 0.50 a Decrease of 10 Basis Points in the Interest

Question 25

Multiple Choice

A stock is trading at $20. A one-month put with a strike of 19 is valued at $0.360 and has a rho of −0.50- 0.50 . A decrease of 10 basis points in the interest rate changes the put value by


A) −0.005- 0.005 .
B) +0.005+ 0.005 .
C) −0.05- 0.05
D) +0.0005+ 0.0005 .

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