Which of the following statements best describes the range of possible values of the delta of a call option?
A) Lies between $- 1$ and $+ 1$ .
B) Lies between $0$ and $+ 1$ .
C) Lies between $- 1$ and $0$ .
D) Lies between $- \infty$ and $+ \infty$ .

Question

Quizplus · Accepted Answer

The delta of a call option represents the rate of change of the option's price with respect to the change in the underlying asset's price. For call options, delta ranges from 0 (when the option is deep out of the money and has a low probability of finishing in the money) to +1 (when the option is deep in the money and behaves like the underlying asset).

Which of the Following Statements Best Describes the Range of Possible