How does delta impact the profitability of call options in the world of digital currencies?
Sridharan K VMay 03, 2022 · 3 years ago1 answers
In the world of digital currencies, how does the delta value affect the profitability of call options?
1 answers
- May 03, 2022 · 3 years agoDelta, in the context of call options in the world of digital currencies, has a significant impact on profitability. Delta measures the sensitivity of an option's price to changes in the price of the underlying asset. A higher delta implies that the option's price will move more closely in line with the price of the digital currency. This means that a call option with a higher delta will experience greater profitability when the price of the digital currency rises. Conversely, a call option with a lower delta will be less affected by price movements and may result in lower profitability. Traders should consider the delta value when assessing the potential profitability of call options in the digital currency market.
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