If the delta of a call option is 0.6, calculate the delta of an equivalent put option.
A)0.6
B)0.4
C)−0.4
D)−0.6

Question

Quizplus · Accepted Answer

The delta of a put option can be calculated using the put-call parity, which states that the delta of a put option is equal to the delta of a call option minus 1. Therefore, if the delta of a call option is 0.6, the delta of an equivalent put option would be 0.6 - 1 = -0.4.

If the Delta of a Call Option Is 0