The delta of a call measures:
A)the change in the ending stock value.
B)the change in the ending option value.
C)the swing in the price of the call relative to the swing in stock price.
D)the ratio of the change in the exercise price to the change in the stock price.
E)None of the above.

Question

Quizplus · Accepted Answer

The delta of a call option measures the change in the price of the call relative to the change in the stock price. In other words, it measures the sensitivity of the option price to changes in the underlying stock price. It is often represented as a percentage, ranging from 0 to 1, with a higher delta indicating that the option price will move more in response to changes in the stock price.

The Delta of a Call Measures