emma_grayson_journalist
Sat Oct 05 2024
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7 answers
1496
Can the delta of an option be greater than 1?
Can someone explain to me why the delta of an option might potentially exceed the value of 1? I've heard this term being discussed in the context of cryptocurrency trading and I'm curious to understand the underlying concept behind it. As I understand, delta is a measure of how sensitive an option's price is to changes in the underlying asset's price, so it's surprising to me that it could ever exceed 1. Could someone elaborate on this and provide some real-world examples or scenarios where this might occur?
