The Delta of an Option Is

question 3

Multiple Choice

The delta of an option is

• A)a measure of the option's price volatility.
• B)calculated by dividing the price of the underlying security by the change in the option's price.
• C)equal to the option premium.
• D)calculated by multiplying the change in the price of the underlying security by the change in the option's price.

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Definitions:

Crepitation

the grating, crackling or popping sounds and sensations experienced under the skin and joints or a crackling sensation due to the presence of air in the subcutaneous tissue.

Bone Spur

A bony growth formed on normal bone, often due to aging or as a response to friction or pressure.

Fluid

A substance that has no fixed shape and yields easily to external pressure; can be a gas or a liquid.

Genu Valgum

A condition characterized by an inward curvature of the legs, commonly known as "knock-knees."