The delta of a call option on a stock is always ________.
A) negative and less than −1
B) between −1 and 1
C) positive
D) positive but less than 1

Question

Quizplus · Accepted Answer

The delta of a call option is positive because the price of the call option increases as the price of the underlying stock increases. However, it is less than 1 because the option does not move dollar-for-dollar with the stock.

The Delta of a Call Option on a Stock Is