Which of the Following Statements Best Describes the Delta of Vanilla

question 18

Multiple Choice

Which of the following statements best describes the delta of vanilla options?

• A) Call and put deltas are both positive.
• B) The call delta is positive and the put delta is negative.
• C) The call delta is negative and the put delta is positive.
• D) Call and put deltas are both negative.

---

Definitions:

Assets Abroad

Financial holdings or investments located in foreign countries, outside of an investor's home country.

Current Account Deficit

A measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the products it exports.

Capital Account

A national account that records transactions involving the purchase and sale of assets, including real estate, stocks, bonds, and businesses, between residents and non-residents.

Financial Account

Part of the balance of payments, recording transactions that involve financial assets and liabilities between domestic and foreign entities.