To estimate a partial change in option price, a risk manager will use the following formula:

To estimate a partial change in option price, a risk manager will use the following formula:
A . Partial change in option price = Delta x Change in underlying price
B . Partial change in option price = Delta x (1+ Change in underlying price)
C . Partial change in option price = Delta x Gamma x Change in underlying price
D . Partial change in option price = Delta x Gamma x (1+ Change in underlying price)

View Answer

Answer: A