alleryStart learning →An out-of-the-money call has delta 0.15. What does a trader estimate?
AAbout 85% in-the-money odds
BAbout 15% in-the-money odds
CAlmost no chance of exercise
DPremium will rise 15%
Answer & Solution
Correct answer: B. About 15% in-the-money odds
The absolute delta is close to the implied probability of expiring in the money, so about 15 percent.
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