The percentage change in the stock call option price divided by the percentage change in the stock price is the __________ of the option.
A) delta
B) elasticity
C) gamma
D) theta

Question

Quizplus · Accepted Answer

The percentage change in the stock call option price divided by the percentage change in the stock price is known as option elasticity. Delta refers to the ratio between the change in the price of an option and the change in the price of the underlying asset. Gamma refers to the rate of change of an option's delta in response to changes in the underlying asset's price. Theta refers to the rate at which the price of an option decreases over time due to the passage of time.

The Percentage Change in the Stock Call Option Price Divided