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Baruch MFE Baruch MFE Facebook Contest

dstefan said:
post the answer here, since it was a technology problem.
Click to expand...
Is the question on the wall? Can't see it.
The most recent thing I see on the wall is :
The first questions coming up in 3hours (and two minutes :) )

Weird!!!
 
On the wall:

What is the Delta of an at-the-money put option?
 
post the answers on Facebook only, unless you have technical difficulties.
 
Scores after the first question:

Devdeep Sarkar 1.5 points (wrong first answer)
ashwani 1 point
AlexandreH 1 point
Shantanu Dikshit 0 points
Patrik Karlsson 0 points
Shantanu Dikshit 0 points
 
ashwani, AlexandreH - form now on, only post answers on Facebook.
 
Answer: the delta of an ATM put is a slightly higher than -0.5 (for almost all instances).

From Put-Call parity, Delta(P) = Delta(C) - 1.
The Delta of an ATM call is slightly higher than 0.5 (for a non-dividend-paying underlying asset). If Delta(C) = 0.5 + d, with d>0, then
Delta(P) = -0.5 + d > -0.5
 
dstefan said:
Scores after the first question:

Devdeep Sarkar 1.5 points (wrong first answer)
ashwani 1 point
AlexandreH 1 point
Shantanu Dikshit 0 points
Patrik Karlsson 0 points
Shantanu Dikshit 0 points
Click to expand...

I was taught from my childhood: "Read the Question "carefully" at least a couple of times before you answer it." - I guess it was time to re-learn it today!!! ;)
Thanks, Prof. Stefanica.
 
better to learn it in these circumstance than later on. and, after all, you are still leading, and learned the lesson ;)
 
four people answered, including you, Alex.

the 3 point solution will be posted at 1pm EST.
 
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