Which of the following describes delta?
A) The ratio of the option price to the stock price
B) The ratio of the stock price to the option price
C) The ratio of a change in the option price to the corresponding change in the stock price
D) The ratio of a change in the stock price to the corresponding change in the option price

Question

Quizplus · Accepted Answer

Delta is F1F1F1S1F1F1F10f/F1F1F1S1F1F1F10S where F1F1F1S1F1F1F10S is a small change in the stock price (with nothing else changing)and F1F1F1S1F1F1F10f is the corresponding change in the option price.

Which of the Following Describes Delta