How Do You Interpret a Delta of 0.30

question 72

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 10-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% change in the price of the option.

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Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.

Logistics Department

The division in a company that is responsible for the planning, control, and management of the movement and storage of goods.

Variable Costs

Outgoings that vary precisely in accordance with the quantity of production or output.

Fixed Costs

Constant expenses that remain stable regardless of changes in the business activity level, playing a crucial role in budgeting and financial planning.