Delta

Business, Legal & Accounting Glossary

Definition: Delta


Delta

Quick Summary of Delta


The change in price of a call option for every one-point move in the price of the underlying security. also called hedge ratio.




Examples of Delta in a sentence


The manager was happy when he realized his elasticity delta was one-half because that meant that he could continue to raise prices.

The delta was mentioned by the trader but his client did not understand so he tried explaining the relationship of the underlying securities.

When the stockbroker saw that the car company had made large profits in the previous quarter, he knew that many investors who had bought an option to buy the stock would be calling him to sell their option to profit off the high delta.


Synonyms For Delta


Hedge Ratio


Related Phrases


Delta One
dynamic hedging strategy
option pricing curve
delta neutral
gamma
curvature
neutral spread
elasticity of an option
option elasticity
neutral hedge ratio
delta hedging
position delta
delta spread
delta cross hedge


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https://payrollheaven.com/define/delta/
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October 05, 2022 https://payrollheaven.com/define/delta/.
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Delta. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/delta/ (accessed: October 05, 2022).
American Psychological Association (APA):
Delta. PayrollHeaven.com. Retrieved October 05, 2022
, from PayrollHeaven.com website: https://payrollheaven.com/define/delta/

Definition Sources


Definitions for Delta are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.