delta investment & finance definition
The
measurement of how much an option’s premium changes when there is a unit change
in the underlying price of the financial instrument, which may be a futures
contract, a stock, or some other financial instrument. Another way to interpret
delta is as an indication of whether an option will still be in the money, or
have value, at its expiration.
See delta in Wall Street Words
The change in the price of an option that results from a one-point change in the price of the underlying stock. For example, a delta of 0.5 indicates that the option will rise in price by 1/2 point (50¢) for each 1-point ($1) rise in the price of the underlying stock. Call options have positive deltas; put options have negative deltas.
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