Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 21 of 32
Consider a put option with X = $40; r = 0.06; T = 90 days; σ = 0.1; and S0 = $40. The delta of this put option should be close to ______.
B. 1
C. This cannot be determined but it is very sensitive to a change in the underlying price.
A. 0
B. 1
C. This cannot be determined but it is very sensitive to a change in the underlying price.
User Contributed Comments 0
You need to log in first to add your comment.
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
interpret each of the option Greeks;
describe how a delta hedge is executed;
describe the role of gamma risk in options trading;
define implied volatility and explain how it is used in options trading.
CFA® 2025 Level II Curriculum, Volume 5, Module 32.