The Delta of an Option Refers to the Change in the Value

question 15

Multiple Choice

The delta of an option refers to the change in the value of an:

• A)option for a large unit change in the price of the underlying security
• B)option for a small unit change in the price of the underlying security
• C)underlying security for a small unit change in the price of the option
• D)underlying security for a large unit change in the price of the option

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Definitions:

Mental Age

An assessment of an individual's mental capability expressed in terms of the average abilities of a certain age group.

Achievement Test

An assessment designed to measure an individual's knowledge or proficiency in a certain area that they have been taught or trained in.

Achievement Test

A standardized test designed to evaluate a person's proficiency in a particular area of knowledge or skill.

Stereotype Threat

Stereotype Threat refers to the risk of confirming negative stereotypes about one's group, which can diminish performance in affected individuals.