How Do You Interpret a Delta of 0.30

question 10

Multiple Choice

How do you interpret a delta of 0.30?

• A) A delta of 0.30 means that a one-cent change in the price of the underlying asset of the option leads to a 0.30 cent change in the price of the option.
• B) A delta of 0.30 means that a ten-cent change in the price of the underlying asset of the option leads to a 0.30 cent change in the price of the option.
• C) A delta of 0.30 means that a one-dollar change in the price of the underlying asset of the option leads to a 0.30 cent change in the price of the option.
• D) A delta of 0.30 means that a one-dollar change in the price of the underlying asset of the option leads to a 30 per cent change in the price of the option.

---

Definitions:

Excessive Control

A situation where the level of regulation or direction exceeds what is considered normal or necessary, often leading to inefficiencies or reduced autonomy.

Industry

A sector of the economy that produces goods or services, often categorized by the type of activity involved, such as manufacturing, agriculture, or services.

Public Good

A good or service that is characterized by nonrivalry and nonexcludability. These characteristics typically imply that no private firm can break even when attempting to provide such products. As a result, they are often provided by governments, who pay for them using general tax revenues.

Government

The government refers to the system or group of people governing an organized community, often a state, setting and enforcing laws and policies.