Which of the Following Is True About the Value of the Delta

question 25

Multiple Choice

Which of the following is true about the value of the delta of an option?

• A)It lies between 0 and 0.5.
• B)It is always negative.
• C)It lies between 0 and 1.
• D)It is greater than 1.
• E)It is always equal to 1.

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Definitions:

Capital Balance

The amount of money invested in a business by its owners plus any retained earnings or minus any losses.

Partnership Net Income

The total earnings derived from a partnership's business operations after subtracting all expenses, shared among the partners according to their agreement.

Capital Contribution

The funds or resources that owners inject into a company or partnership to support its operations and growth.

Personal Use

The use of a company's assets or services by an individual for their private needs, not for business purposes.