The Delta of an Option Is __________

question 80

Multiple Choice

The delta of an option is __________.

• A) the change in the dollar value of an option for a dollar change in the price of the underlying asset
• B) the change in the dollar value of the underlying asset for a dollar change in the call price
• C) the percentage change in the value of an option for a one percent change in the value of the underlying asset
• D) the percentage change in the value of the underlying asset for a one percent change in the value of the call

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Definitions:

Social Conventions

Agreed-upon norms and rules that dictate the behavior expected of individuals within a society or group.

Dominant

Exhibiting power or influence over others, or referring to a trait that is expressed in an organism over other genetic traits when two different genes for the same trait are present.

Theory of Mind

The cognitive capacity to attribute mental states, like beliefs and intentions, to oneself and others, understanding that others have beliefs and perspectives different from one's own.

Moral Reasoning

The process by which individuals make decisions about what is right and wrong, based on personal, societal, and ethical principles.