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During the last ten minutes of trading, call options on Commart Inc. common stock have risen...

During the last ten minutes of trading, call options on Commart Inc. common stock have risen from $1.20 to $1.60. Shares of the underlying stock have risen from $51.30 to $52.05 during the same time interval. Calculate the delta of the call option.

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Answer #1

Delta of call option is calculated as = change in price of call/change in price of stock=(1.60-1.20)/(52.05-51.30)=0.5333

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