CryptoVeteran
Sun Sep 29 2024
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6 answers
876
Why is delta 0.5 at the money?
Could you please explain why delta is 0.5 at the money for an option contract? I understand that delta represents the change in the option's price relative to the change in the underlying asset's price, but I'm not clear on why this value specifically equals 0.5 when the option is at the money. Is there a specific mathematical or financial rationale behind this phenomenon? It would be great if you could elaborate on the concept and provide any relevant examples to help me better understand.
Daniele
Sun Aug 18 2024
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7 answers
1415
Is gamma highest at the money?
Excuse me, could you please elaborate on the statement "Is gamma highest at the money?" I'm curious to understand the context in which this question arises. In finance and particularly in options trading, gamma measures the sensitivity of the delta of an option to changes in the underlying asset's price. So, are you suggesting that the gamma value peaks when an option is "at the money," meaning its strike price is equal to the current market price of the underlying asset? I'd love to hear your thoughts on why this might be the case and how it impacts traders' decision-making processes.
noah_harrison_philosopher
Thu May 23 2024
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7 answers
1501
Is theta highest at the money?
Could you please elaborate on the statement "Is theta highest at the money?"? I'm interested in understanding what you mean by "theta" in this context, and how it relates to the concept of "at the money." Could you explain how theta is measured and why it might be considered highest at a specific point? Additionally, I'm curious about the implications of this statement for traders and investors in the cryptocurrency or finance industry. Could you provide some insights into how this understanding might affect decision-making and risk management?
