The Delta of an Option Is

question 55

Multiple Choice

The delta of an option is

• A)a measure of the option's price volatility.
• B)calculated by dividing the price of the underlying security by the change in the option's price.
• C)equal to the option premium.
• D)calculated by multiplying the change in the price of the underlying security by the change in the option's price.
• E)usually negative.

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Definitions:

Auditory Sensations

Perceptions of sound, including their pitch, volume, and timbre, as processed by the ear and the brain.

Transduction

The process of converting one form of energy into another, as in sensory systems converting physical stimuli (like light or sound) into neural signals.

Neural Signal

The electrical or chemical transmission of information through neurons in the nervous system, facilitating communication between the brain and the body.

Physical Stimulus

An event or object in the environment that influences an individual's sensory and physiological response.