Delta is needed to estimate the amount of additional reward you will receive for purchasing a risky asset instead of a risk-free asset.

Name: Delta is needed to estimate the amount of additional reward you will receive for purchasing a risky asset instead of a risk-free asset.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Delta measures the sensitivity of an option's price to a $1 change in the price of the underlying asset, not the additional reward for purchasing a risky asset over a risk-free asset.

Delta Is Needed to Estimate the Amount of Additional Reward