JPM’s stock trades at 100 and a call option on the stock with a 100 strike rate, trades at 2.6214.

JPM’s stock trades at 100 and a call option on the stock with a 100 strike rate, trades at 2.6214.

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JPM’s stock trades at 100 and a call option on the stock with a 100 strike rate, trades at 2.6214.
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JPM’s stock trades at 100 and a call option on the stock with a 100 strike rate, trades at 2.6214. The call option has a delta of 0.5252 and a gamma of 0.06295. If the stock price instantaneously increases by 3.00 and all other variables remain unchanged.

What’s your best estimate of the new price of the call option?

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To estimate the new price of the call option after the instantaneous increase in the stock price we
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