Delta Is Defined as

question 33

Multiple Choice

Delta is defined as

• A)the change in the value of an option for a dollar change in the price of the underlying asset.
• B)the change in the value of the underlying asset for a dollar change in the call price.
• C)the percentage change in the value of an option for a 1% change in the value of the underlying asset.
• D)the change in the volatility of the underlying stock price.

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Definitions:

Efficient Outcome

A situation where resources are allocated in the most effective manner, leaving no room for improvement without making someone worse off.

Marginal Social Benefit

The additional benefit to society from consuming one more unit of a good or service.

Nonrival Good

Good for which the marginal cost of its provision to an additional consumer is zero.

Marginal Social Cost

The additional cost to society of producing one extra unit of a good or service, considering both private costs and externalities.