Module 2 Lesson 2 Flashcards
1
Q
One of the most important factors that causes the option price to go up or down in value from the time that you BTO or STO is?
A
The underlying stock price.
2
Q
The relationship between the option price and the underlying stock price is?
A
Not 1-for-1
3
Q
What does the term Moneyness mean?
A
How in the money (ITM) the option is.
4
Q
What does Delta measure?
A
The $ impact on the option price due to a $1 increase in the underlying.
