Which of the Following Statements About the Delta Is Not

question 49

Multiple Choice

Which of the following statements about the delta is not true?

• A)it ranges from zero to one
• B)it converges to zero or one at expiration
• C)it is given by N(d1)in the Black-Scholes-Merton model
• D)it changes slowly near expiration if the option is at-the-money
• E)none of the above

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Definitions:

Depolarizing

A process in which a cell's membrane potential becomes less negative, moving towards zero, often leading to an action potential in neurons.

Repolarizing

The process by which a cell restores its membrane potential to a negative value after an action potential, preparing it for another action potential.

Hyperpolarizing

Hyperpolarizing refers to an increase in a cell's membrane potential, making it more negative and less likely to activate an action potential.

Threshold

The minimal level of stimulation required to trigger a neural impulse or a physiological response.