The Delta of an Option Is ________

question 31

Multiple Choice

The delta of an option is ________.

• A) the change in the dollar value of an option for a dollar change in the price of the underlying asset
• B) the change in the dollar value of the underlying asset for a dollar change in the call price
• C) the percentage change in the value of an option for a 1% change in the value of the underlying asset
• D) the percentage change in the value of the underlying asset for a 1% change in the value of the call

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Definitions:

Interest Revenue

Income earned from lending money or investing in interest-bearing financial instruments.

Bonds Payable

Long-term liabilities represented by bonds that a company is obligated to repay at a specified redemption date.

Interest Payments

The cost of borrowing money, typically expressed as an annual percentage of the loan amount, paid by the borrower to the lender.

Return on Total Assets

A financial ratio that measures a company's profitability relative to its total assets, indicating how effectively a company uses its assets to generate profit.