The Delta of a Call Measures

question 46

Multiple Choice

The delta of a call measures:

• A)the change in the ending stock value.
• B)the change in the ending option value.
• C)the swing in the price of the call relative to the swing in stock price.
• D)the ratio of the change in the exercise price to the change in the stock price.
• E)None of the above.

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Definitions:

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of that good supplied by an industry at various price levels.

Barriers To Entry

Barriers to entry are obstacles that make it difficult for new competitors to enter a market, including high costs, strict regulations, and established brand loyalty.

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Price Discrimination

A pricing strategy where identical or substantially similar products or services are sold at different prices by the same provider in different markets.