The delta of an option is
A)a measure of the option's price volatility.
B)calculated by dividing the price of the underlying security by the change in the option's price.
C)equal to the option premium.
D)calculated by multiplying the change in the price of the underlying security by the change in the option's price.
E)usually negative.

Question

Quizplus · Accepted Answer

Delta is a measure of the sensitivity of an option's price to a $1 change in the price of the underlying asset. It is not directly related to volatility, premium, or negative values in all cases.

The Delta of an Option Is