Which of the following statements best describes the range of possible values of the delta of a call option?
A)Lies between $- 1$
And
$+ 1$
)
B)Lies between $0$
And
$+ 1$
)
C)Lies between $- 1$
And
$0$
)
D)Lies between $- \infty$
And
$+ \infty$
)

Question

Which of the following statements best describes the range of possible values of the delta of a call option?
A)Lies between $- 1$
And
 $+ 1$
)
B)Lies between $0$
And
 $+ 1$
)
C)Lies between $- 1$
And
 $0$
)
D)Lies between $- \infty$
And
 $+ \infty$
)

Quizplus · Accepted Answer

The delta of a call option represents the rate of change of the option's price with respect to the change in the underlying asset's price. It ranges from 0 (indicating no change) to +1 (indicating a one-to-one change with the underlying asset). Negative deltas are associated with put options, not call options.

Which of the Following Statements Best Describes the Range of Possible