The Delta of an Option Is Defined As

question 16

Multiple Choice

The Delta of an option is defined as:

• A) expected change in the option premium for a small change in time to expiration.
• B) expected change in the option premium for a small change in volatility.
• C) expected change in the option premium for a small change in the spot rate.
• D) expected change in the option premium for a small change in the domestic interest rate.

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Definitions:

Defense Mechanism

Psychological strategies employed by individuals to cope with reality and maintain self-image.

Introversion-Extraversion

A personality dimension that reflects the extent to which an individual is outgoing and energized by social interaction, contrasted with a preference for solitude and internal experience.

Emotional Stability-Instability

A personality trait spectrum where an individual's ability to remain stable and balanced versus experiencing frequent mood swings is measured.

Archetypes

Universal, symbolic images that appear across cultures and literature, representing fundamental human desires and emotions.