Explain the concept of the delta of an option.

Option #1: Delta and Risk-Neutral Pricing
Please respond to the following questions while elaborating on your insight and providing external support:

Explain the concept of the delta of an option.
Give an example of a derivative where the delta may be either positive or negative for different ranges of the stock price. Please explain in detail.
Provide an understanding if risk-neutral pricing including how it works and how it can be used.
Complete your 4page (1200-1500 word) response using Microsoft Word. Include 6 references (at least 4 scholarly/peer reviewed). Your well-written response should be formatted according to the current APA format with sources properly cited.