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:

Bad News

Refers to information or messages that are unfavorable or unwelcome.

Bad-News Message

Communication that conveys disappointing, unfavorable, or negative information to the recipient in a tactful way.

Indirect Strategy

A communication approach that delivers sensitive or potentially negative information in a less direct manner.

Complimenting

The act of expressing praise, admiration, or approval towards someone or something.