The Delta of a Up-And-Out Call Option with Barrier $H$ Lying Above the Strike

question 1

Multiple Choice

The delta of a up-and-out call option with barrier $H$ lying above the strike $K$ is most likely to be negative when

• A) The underlying stock price \(S\) is at or near \(K\) .
• B) The underlying stock price \(S\) is close to and less than \(H\) .
• C) The underlying stock price \(S\) is well below \(K\) .
• D) The delta of a call cannot be negative.

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