Which of the Following Is True of the Delta of an Option

question 18

Multiple Choice

Which of the following is true of the delta of an option?

• A)It lies between 0 and 0.5.
• B)It is always negative.
• C)It lies between 0 and 1.
• D)It is greater than 1.
• E)It is always equal to 1.

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Annual Payment

A payment made once a year, often related to loans, insurance policies, or subscription services.

Investment

The allocation of resources, usually capital, in the expectation of generating an income, profit, or capital appreciation.

Interest Rate

The share of a loan subjected to interest charges for the borrower, often expressed as an annual percentage of the total loan that is yet to be paid.