If the Black-Scholes Call Delta (Assume a Non-Dividend-Paying Stock) Is $S = K$

question 14

Multiple Choice

If the Black-Scholes call delta (assume a non-dividend-paying stock) is equal to 1/2, then which of the following statements is most valid?

• A) The call is at-the-money, i.e., \(S = K\) .
• B) The call is at-the-money forward, i.e., \(S = P V ( K )\) .
• C) \(P V ( K ) > S\) .
• D) \(P V ( K ) < S\) .

---

Definitions:

Islam

A monotheistic Abrahamic religion based on the Quran, which Muslims consider to be the word of God as revealed to the Prophet Muhammad.

Sikhism

A monotheistic religion founded in the 15th century in the Punjab region of India, emphasizing devotion to God, community service, and equality among humankind.

Pantheon

All the gods and goddesses of a people.

Goddesses

Female deities worshipped in various religions and mythologies, often associated with nature, fertility, and life-giving aspects.