The Delta of a Put Option Always Equals

question 47

Multiple Choice

The delta of a put option always equals

• A)the delta of an equivalent call option.
• B)the delta of an equivalent call option with a negative sign.
• C)the delta of an equivalent call option minus one.
• D)the delta of an equivalent call option plus one.

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Definitions:

Multinomial Probability

The probability of achieving a given set of outcomes in a multinomial experiment, where each outcome is based on discrete, mutually exclusive categories.

Categorical Outcomes

Results or responses that can be classified into mutually exclusive categories but not ordered.

Trial

An individual instance or attempt within an experiment or study to observe outcomes or reactions under a particular set of conditions.

P-Value Approach

A method in hypothesis testing that uses the p-value to decide whether to reject the null hypothesis, based on the strength of the observed data.