Delta: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson (Classify page.) |
||
| (3 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
1. '' | 1. ''Options.'' | ||
Delta is the slope of the curve of option value plotted against underlying asset price. | Delta is the slope of the curve of option value plotted against underlying asset price. | ||
| Line 6: | Line 7: | ||
It ranges between 0 and +/-1, depending on whether the option is a call or a put, and whether we have a long (bought) or short (sold) position in the option. | It ranges between 0 and +/-1, depending on whether the option is a call or a put, and whether we have a long (bought) or short (sold) position in the option. | ||
2. More generally, any change in a variable, especially a financial variable. | |||
2. ''Change - difference.'' | |||
More generally, any change in a variable, especially a financial variable. | |||
Or any difference between two related variables. | |||
== See also == | == See also == | ||
* [[Call]] | |||
* [[Delta hedging]] | * [[Delta hedging]] | ||
* [[Delta neutral]] | * [[Delta neutral]] | ||
* [[Derivative]] | |||
* [[Gamma]] | * [[Gamma]] | ||
* [[Greeks]] | * [[Greeks]] | ||
* [[Low-delta option]] | |||
* [[Out of the money]] | |||
* [[Option]] | * [[Option]] | ||
* [[Put]] | |||
* [[Underlying asset]] | |||
* [[Variable]] | |||
[[Category:The_business_context]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 19:56, 29 June 2022
1. Options.
Delta is the slope of the curve of option value plotted against underlying asset price.
Mathematically, it is the first derivative of option value with respect to the underlying asset price.
It ranges between 0 and +/-1, depending on whether the option is a call or a put, and whether we have a long (bought) or short (sold) position in the option.
2. Change - difference.
More generally, any change in a variable, especially a financial variable.
Or any difference between two related variables.
