What are Option Greeks?

Forces that influence the premium of an option Mathematical formulas used to calculate option pricing Market indicators that predict future stock movements Trading strategies used by experienced investors

What does the Delta of an option measure?

The rate of change of the option's premium based on the directional movement of the underlying asset The volatility of the underlying asset The time decay of the option's premium The probability of the option expiring in-the-money

What is the typical range for the Delta of a call option?

-1 to 0 0 to 1 0 to 100 Both B and C are correct

What does a Delta of 0.5 signify for a call option?

The option is deeply in-the-money The option is deeply out-of-the-money The option is at-the-money The option is about to expire

Why can't the Delta of a call option be greater than 1?

Because it would mean the option is gaining value faster than the underlying asset Because the Black & Scholes model prohibits it Because it would make the option too expensive Because it would create an arbitrage opportunity

What is the approximate Delta value for a deep in-the-money call option?

Between 0.3 and 0 Between 0.45 and 0.3 Between 0.45 and 0.55 Between 0.8 and 1

What does a negative Delta value indicate for a put option?

The option premium and underlying value move in opposite directions The option is losing value rapidly The option is about to expire worthless The option is highly volatile

Who or what determines the value of the Delta for an option?

The option's seller The option's buyer The Black & Scholes option pricing formula The Securities and Exchange Commission