By Staff Reporters
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What is Delta?
FINANCE: Delta is a risk sensitivity measure used in assessing derivatives. It is one of the many measures that are denoted by a Greek letter. The series of risk measures that use such letters are fittingly referred to as the Greeks. They are often also called risk measures, hedge parameters, or risk sensitivities.
ACCOUNTING: Delta is the ratio of the change in price of an option to the change in price of the underlying asset. Also called the hedge ratio; For a call option on a stock, a delta of 0.50 means that for every $1.00 that the stock goes up, the option price rises by $0.50.
STOCK MARKET: Where:
- S – the stock price
- K – the strike price
- r – the risk-free rate
- q – the annual dividend yield
- τ – time until expiration
- σ – the volatility
CITE: https://www.r2library.com/Resource/Title/082610254
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Filed under: Accounting, Financial Planning, Glossary Terms, Health Economics, Investing | Tagged: Accounting delta, Business delta, Delta, Financial Delta, stock market delta, What is Financial and Accounting DELTA? |
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