How do you interpret a delta of 0.30?
A) A delta of 0.30 means that a one-cent change in the price of the underlying asset of the option leads to a 0.30 cent change in the price of the option.
B) A delta of 0.30 means that a ten-cent change in the price of the underlying asset of the option leads to a 0.30 cent change in the price of the option.
C) A delta of 0.30 means that a one-dollar change in the price of the underlying asset of the option leads to a 0.30 cent change in the price of the option.
D) A delta of 0.30 means that a one-dollar change in the price of the underlying asset of the option leads to a 30 per cent change in the price of the option.

Question

Quizplus · Accepted Answer

A delta of 0.30 means that for every one-cent change in the price of the underlying asset of the option, the price of the option will change by 0.30 cents.

How Do You Interpret a Delta of 0.30