Answer-first summary for fast verification
Answer: Call: -1.00; Put: +0.05
For deep in-the-money call options, delta approaches 1.0, meaning the option price changes by approximately the same amount as the underlying stock price. For deep out-of-the-money put options, delta approaches 0, meaning the option price is relatively insensitive to small stock price changes. Therefore: - Call option (deep ITM): Decreases by approximately USD 1.00 - Put option (deep OTM): Increases by a small amount close to 0 (USD 0.05) This matches the characteristics of option deltas in different moneyness states.
Author: LeetQuiz Editorial Team
Ultimate access to all questions.
A
Call: -1.00; Put: +0.05
B
Call: -0.50; Put: +0.50
C
Call: -0.05; Put: +1.00
D
Call: +0.95; Put: +0.05
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