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

---

Definitions:

Product Variety

The assortment of different products or services offered by a firm or present in a market.

Product Differentiation

The strategy of highlighting what makes a product or service unique in the market to boost its appeal to a particular target group.

Innovation

The process of transforming ideas into new or improved products, services, or processes, driving economic growth and solving problems.

Horizontal Differentiation

Variability of products that are essentially similar but differ in terms of attributes like design, flavor, or brand.