Asked by jesus salazar on Jun 19, 2024

verifed

Verified

Delta is the effect on an option's value of a small change in the value of the underlying asset is called the option.

Delta

In finance, it's a ratio that compares the change in the price of an asset, usually a marketable security, to the corresponding change in the price of its derivative.

Underlying Asset

The financial asset upon which a derivative's price, such as an option or future, is based.

  • Understand the principles of intrinsic value and the sensitivity indicators (Delta, Gamma) associated with options.
verifed

Verified Answer

FM
Frankie MartinezJun 26, 2024
Final Answer :
True
Explanation :
Delta measures how much the price of an option is expected to move based on a $1 change in the underlying asset price.