Multiple Choice
Which two statements are true? choose two)
A) Delta is a measure of the volatility of an option.
B) Delta is a measure of the position in the underlying stock that should be taken to hedge an option.
C) Delta is estimated by considering two adjacent nodes on a tree at a certain time and calculating the difference in option prices divided by the difference in the stock prices.
D) The delta of a put option is positive.
Correct Answer:
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