A Cash-Or-Nothing Binary Call Option Increases in Value When the Price

Multiple Choice

A cash-or-nothing binary call option increases in value when the price of the underlying increases. The delta of such an option

A) Is positive and increases in value as the price of the underlying increases.
B) can be positive or negative, but increases in value as the price of the underlying increases.
C) is positive but can increase or decrease in value as the price of the underlying increases.
D) is equal to the risk-neutral probability of the option finishing in-the-money.