Which statement about delta and hedging is most accurate?

Which statement about delta and hedging is most accurate?

• A. Delta is the rate at which an option's price changes as the underlying price changes.
• B. Delta is the same as gamma.
• C. Delta has no practical use for hedging.
• D. Delta indicates the sensitivity of the option's price to changes in the underlying price, and is the primary input for delta-hedging decisions.

Answer: (D)