A one-dollar increase in a stock's price would result in ________ in the call option's value of ________ than one dollar.
A) a decrease; less
B) a decrease; more
C) an increase; less
D) an increase; more

Question

Quizplus · Accepted Answer

An increase in the underlying stock's price leads to an increase in the call option's value, but due to the option's delta being less than 1, the increase in the option's value is less than the increase in the stock's price.

A One-Dollar Increase in a Stock's Price Would Result in ________