If the Black-Scholes call delta (assume a non-dividend-paying stock)is equal to 1/2,then which of the following statements is most valid? A)The call is at-the-money,i.e. , $S = K$ ) B)The call is at-the-money forward,i.e. , $S = P V ( K )$ ) C) $P V ( K ) S$ ) D) $P V ( K )

Question

If the Black-Scholes call delta (assume a non-dividend-paying stock)is equal to 1/2,then which of the following statements is most valid?
A)The call is at-the-money,i.e. , $S = K$
)
B)The call is at-the-money forward,i.e. , $S = P V ( K )$
)
C) $P V ( K ) > S$
)
D) $P V ( K ) < S$
)

Quizplus · Accepted Answer

The Answer of If the Black-Scholes call delta (assume a non-dividend-paying stock)is equal to 1/2,then which of the following statements is most valid?
A)The call is at-the-money,i.e. , $S = K$
)
B)The call is at-the-money forward,i.e. , $S = P V ( K )$
)
C) $P V ( K ) > S$
)
D) $P V ( K ) < S$
)

If the Black-Scholes Call Delta (Assume a Non-Dividend-Paying Stock)is Equal S=KS = KS=K

If the Black-Scholes Call Delta (Assume a Non-Dividend-Paying Stock)is Equal $S = K$