Delta Ratio Calculator

Delta Ratio Calculator calculator can be used to measure the sensitivity of an option's price to changes in the underlying asset's price.

Input Parameters

Calculation Results

Calculation Formula

Delta Ratio = Delta / (Underlying Asset Price)

Where:
Delta Ratio: Sensitivity of the option's price to changes in the underlying asset's price.
Delta: Change in option price for a $1 change in the underlying asset price.
Underlying Asset Price: Current price of the underlying asset.

Delta Ratio Calculator Calculator Usage Guide

Learn how to use the Delta Ratio Calculator calculator and its working principles

How to Use the Delta Ratio Calculator

  1. Enter the Underlying Asset Price in the first input field.
  2. Enter the Option Price in the second input field.
  3. Enter the Delta value in the third input field.
  4. Click the "Calculate" button to compute the Delta Ratio.
  5. The result will be displayed in the Delta Ratio field.

Understanding the Delta Ratio

The Delta Ratio is a measure of the sensitivity of an option's price to changes in the underlying asset's price. It is calculated by dividing the Delta (the change in option price for a $1 change in the underlying asset price) by the Underlying Asset Price.

For example, if an option has a Delta of 0.5 and the underlying asset is priced at $100, the Delta Ratio would be 0.005, indicating that the option's price is expected to change by $0.005 for every $1 change in the underlying asset's price.