If the Delta of a Call Option Is 0

question 42

Multiple Choice

If the delta of a call option is 0.4, calculate the delta of an equivalent put option.

• A)0.6
• B)0.4
• C)−0.4
• D)−0.6

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Definitions:

Say's Law

An economic theory that suggests that supply creates its own demand, meaning that production inherently generates a demand for the goods produced.

Open Economy

An economy linked to the rest of the world through international trade.

Equilibrium GDP

The level of GDP at which total demand for goods and services equals total supply in an economy, indicating a state of economic balance.

Aggregate Demand

The entirety of demand for goods and services within an economy, at a chosen general price level and throughout a specified time period.