Delta is defined as
A)the change in the value of an option for a dollar change in the price of the underlying asset.
B)the change in the value of the underlying asset for a dollar change in the call price.
C)the percentage change in the value of an option for a 1% change in the value of the underlying asset.
D)the change in the volatility of the underlying stock price.

Question

Quizplus · Accepted Answer

Delta is the rate of change in the option's price for a unit change in the price of the underlying asset. A change in the underlying asset's price results in a change in the option price, and delta measures that change.

Delta Is Defined as