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Find which not true about the option contract

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Reference no: EM132505376

Question 1: A European equity option contract has a strike price of $170, an expiration date of 30-Feb-2020, and a delta of -0.596. Which of the following is NOT true about this option contract?

  1. If the stock price goes up by a dollar, the option price will fall by 59.6 cents.
  2. The holder can only exercise the option on 30-Feb-2020.
  3. If the stock price goes up to $175, the holder is better off not exercising the option at expiration.
  4. The holder of the option has the right to buy the stock for $170 per share.

Reference no: EM132505376

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