Understanding Delta of a Call Option

Very Easy Option Valuation Greeks

In the context of options trading, it is essential to understand how the Greek letters quantify various risks associated with options. One of the Greek measures, Delta, represents the rate of change of an option's price with respect to changes in the price of the underlying asset.

Which of the following statements correctly describes the Delta of a call option?

Delta ranges between 0 and 1 for a call option.

Delta can assume any value from negative to positive infinity for a call option.

Delta is always negative for a call option.

Hint

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