Given a Small Change in the Value of the Underlying

question 67

Multiple Choice

Given a small change in the value of the underlying stock, the change in an option's price is approximately equal to the change in stock value:

• A) divided by delta.
• B) divided by (1 − Delta).
• C) divided by (1 + Delta).
• D) multiplied by (1 − Delta).
• E) multiplied by delta.

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Definitions:

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