If the Black-Scholes call delta (assume a non-dividend-paying stock) is equal to 1/2, then which of the following statements is most valid? A) The call is at-the-money, i.e., $S = K$ . B) The call is at-the-money forward, i.e., $S = P V ( K )$ . C) $P V ( K ) S$ . D) $P V ( K )

Question

If the Black-Scholes call delta (assume a non-dividend-paying stock) is equal to 1/2, then which of the following statements is most valid?
A) The call is at-the-money, i.e., $S = K$ .
B) The call is at-the-money forward, i.e., $S = P V ( K )$ .
C) $P V ( K ) > S$ .
D) $P V ( K ) < S$ .

Quizplus · Accepted Answer

The Answer of If the Black-Scholes call delta (assume a non-dividend-paying stock) is equal to 1/2, then which of the following statements is most valid?
A) The call is at-the-money, i.e., $S = K$ .
B) The call is at-the-money forward, i.e., $S = P V ( K )$ .
C) $P V ( K ) > S$ .
D) $P V ( K ) < S$ .

If the Black-Scholes Call Delta (Assume a Non-Dividend-Paying Stock) Is S=KS = KS=K

If the Black-Scholes Call Delta (Assume a Non-Dividend-Paying Stock) Is $S = K$