SIE practice questionmediumGreeks basics
Which Greek measures the rate of change in an option’s price for a $1 move in the underlying stock?
- ATheta
- BDelta✓ Correct answer
- CGamma
- DVega
Explanation
Why B — Delta
Delta measures change in option premium for a $1 move in the underlying. Gamma measures the change in delta, theta time decay, and vega volatility.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Options questions
- An investor establishes a bear put spread by:
- When an option writer is assigned, they must:
- Which factor does NOT directly affect the premium of an equity option?
- A customer buys an XYZ Jan 40 call at $3. What is the breakeven stock price at expiration?
- A customer who is long an American-style equity call option may exercise:
- What is the maximum gain for a written (short) put option?
- A stock is quoted at $25.10 bid and $25.30 ask. A customer who places a market order to buy will most likely pay:
- The maximum loss for an investor who buys a call option is: