If an Option's Price Increases 1

question 8

Multiple Choice

If an option's price increases 1.4 percent for every 2 percent change in the price of the underlying security, what is the value of the option's delta?

• A)0.60.
• B)1.40.
• C)0.70.
• D)2.00.
• E)3.00.

---

Definitions:

President

The head of state and government in a republic, often elected by the populace and with executive powers defined by the country's constitution.

Separation of Powers

A foundational principle of governance in which the state's powers are divided among three distinct branches (legislative, executive, and judicial) to prevent abuse of power.

Legislation

Laws and statutes that are enacted by a legislative body in a government.

War Powers Resolution

A federal law intended to check the president's power to commit the United States to armed conflict without the consent of Congress.