Delta is defined as
A)the change in the value of an option for a dollar change in the price of the underlying asset.
B)the change in the value of the underlying asset for a dollar change in the call price.
C)the percentage change in the value of an option for a 1% change in the value of the underlying asset.
D)the change in the volatility of the underlying stock price.
E)None of the options

Question

Quizplus · Accepted Answer

An option's hedge ratio (delta) is the change in the price of an option for a $1 increase in the stock price.

Delta Is Defined as