Consider a European call option on a stock with maturity T and strike K. Describe what is the behavior of the Delta of the option as the option ends up: i) in-the-money ii) out-of-the money iii) at-the-money Draw cartoons of the path of the stock price S(t) in each case, and the corresponding path of Delta(t).

Interpret the result from the point of view of Delta hedging the option with the stock.