The Delta of a Call Measures

question 12

Multiple Choice

The delta of a call measures:

• A)the change in the ending share value.
• B)the change in the ending option value.
• C)the swing in the price of the call relative to the swing in share price.
• D)the ratio of the change in the exercise price to the change in the share price.
• E)None of the above.

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Definitions:

Systematic Desensitization

Systematic desensitization is a behavioral therapy technique used to gradually reduce anxiety or fear associated with a particular object, situation, or activity through controlled exposure.

Distorted Thinking

Cognitive processes that twist and misinterpret reality, often leading to negative emotional outcomes.

Self-Defeating Actions

Behaviors or actions taken by individuals that are intended to facilitate achievement of a desired objective but paradoxically lead to failure or the opposite outcome.

Involuntary Treatment

Therapy that is mandated by the courts or other systems.