Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 24 of 32
For a call option with a delta of 0.5, a $0.5 increase in the underlying price (current price: $72) will cause the price of the call option to ______
B. decrease by $0.25.
C. increase by $1.
A. increase by $0.25.
B. decrease by $0.25.
C. increase by $1.
User Contributed Comments 1
| User | Comment |
|---|---|
| dblueroom | small change in price change of the underlying .5x.5 |
I used your notes and passed ... highly recommended!
Lauren
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.