Why at the money call option's delta equals to 0.5

FRM
#1

[original post removed]

#2

Delta can be treated as probability of expiring the option in “In The Money”. When we are standing at “ATM”, there is approx 50% chance of asset going up and 50% chance of going down. So, 50% chance of expiring in “In the Money”, hence delta = 0.5

ExoticHedge

Vitalize your career…

#3

thx man smiley

#4

In addition to exotichedge reply. Delta is approximately equal to 0.5 for the ATM Call & put options

#5

Almost: +0.5 for call options, -0.5 for put options.