Options and Deltas

What is the delta value of a futures contract?

• 0

• 0.5

• 1

• 1.5

If an ATM option has a delta of 0.5, how many such options would be equivalent to owning 1 futures contract?

• 1

• 2

• 3

• 4

In Case 1, where the trader has 3 different Call options, what is the combined delta of the position?

• 0.25

• 0.5

• 0.75

• 1.25

In Case 2, where the trader has a combination of both Call and Put options, what is the combined delta of the position?

• -0.25

• 0

• 0.25

• 0.5

In Case 3, where the trader has a combination of both Call and Put options and 2 lots of Put options, what is the combined delta of the position?

• -0.25

• -0.5

• -0.75

• -1

In Case 4, where the trader has Calls and Puts of the same strike and same underlying, what is the combined delta of the position?

• -0.5

• 0

• 0.5

• 1

In Case 5, where the trader has sold a Call Option, what is the delta of the position?

• -0.5

• -0.25

• 0

• 0.25

What is the delta of an ATM option?

• 0

• 0.25

• 0.5

• 1

What is the delta of an ITM option?

• 0

• 0.25

• 0.5

• 1

What is the probability of an option with a delta of 0.3 to transition from OTM to ITM?

• 10%

• 30%

• 50%

• 70%