Which of the Following Statements Most Accurately Describes the Range $+ 1$

question 22

Multiple Choice

Which of the following statements most accurately describes the range of possible values of the delta of a cash-or-nothing call option?

• A)The delta lies between 0 and \(+ 1\)
• )
• B)The delta lies between \(- 1\)
• And
• \(+ 1\)
• )
• C)The delta is \(\geq 0\)
• )
• D)The delta can take on any value,positive,negative or zero.

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Definitions:

Discharge

In legal terms, the release or extinguishment of an obligation, debt, or charge.

Collateral Mortgage

A type of mortgage where the borrower provides collateral other than the purchased property to secure the loan.

Building Mortgage

A type of loan specifically used for the purchase, construction, or improvement of buildings, secured by the building itself.

Acceleration Clause

A contractual clause that allows a lender to demand immediate repayment of all outstanding loans if certain conditions are violated.