What is the delta of an option? Why is it useful?
What will be an ideal response?
The delta of a call option represents the change in the value of the derivative asset with a small change in the value of the underlying asset. The expression is also sometimes called the 'hedge ratio' because it arises from the construction of the replicating portfolio. Delta is the amount of foreign currency invested in the risk-free asset to replicate the payoff on the call option.
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A) Avoidance B) Transference C) Retention D) Reduction"
Which of the following statements refer to the currency criteria when evaluating secondary data?
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