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

---

Definitions:

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, leading to more money flowing out of the country than coming in from foreign markets.

Imports

Goods and services brought into a country from abroad for sale.

Exports

Domestically produced goods and services sold in other countries.

Comparative Advantage

A theory in economics that suggests a country should specialize in producing and exporting goods in which it has a lower opportunity cost than its trading partners.