(b) You are given the following information about a European put option: Price = 0.158 A = -0.048 0 = -1.346 (per annum)

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B You Are Given The Following Information About A European Put Option Price 0 158 A 0 048 0 1 346 Per Annum 1 (57.66 KiB) Viewed 11 times

(b) You are given the following information about a European put option: Price = 0.158 A = -0.048 0 = -1.346 (per annum) T = 0.013 The stock underlying the put option has a current price of $50. The stock does not pay dividends. The continuously compounded risk-free rate of return is 6% per annum. A market-maker writes 100 of the put options and then delta-hedges. The next day the stock price falls to $49. Estimate the market-maker's profit.