Question
If delta is 1/3, then it means that a $1 movement in the price of option is matched by a $3 movement in the price
If delta is 1/3, then it means that a $1 movement in the price of option is matched by a $3 movement in the price of stock. Given the larger price movement in stock relative to option, how come people say that option is more risky than stock?
please have explanation
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Business Valuation And Bankruptcy
Authors: Ian Ratner, Grant T. Stein, John C. Weitnauer
1st Edition
0470462388, 978-0470462386
