How does call option delta affect the pricing of digital assets?

1 answers

• Dec 27, 2021 · 3 years ago
  The delta of a call option is an important factor to consider when pricing digital assets. It represents the rate of change in the option price relative to changes in the underlying asset's price. A higher delta indicates a stronger correlation between the option and the asset, meaning that the option price will be more sensitive to changes in the asset's price. Conversely, a lower delta indicates a weaker correlation, resulting in less sensitivity to price changes. Therefore, the delta of a call option can significantly impact the pricing of digital assets, as it determines the extent to which the option price will move in response to changes in the underlying asset's price.
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