To Get Forward (Alt-f), Backward (Alt-b) and Delete (Alt-d) Word Works for iTerm

1. Open iTerm.
2. Go to Bookmarks > Manage Profiles
3. Choose Keyboard Profiles on the left and edit the Global Profile
4. Next to Mapping, click the + sign.
5. For Key, choose hex code.
   
6. In the text box next to hex code, enter 0x62 for b, 0x64 for d or 0x66 for f.
   Note that 0x62, 0x64 and 0x66 are ASCII codes for characters b, d, and f respectively.
   
7. For Modifier, check the Option Box
8. For Action, choose send escape sequence.
   
9. Write b, d or f in the input field.

Now Alt-f will jump forward a word, Alt-b jumps backwards a word, and Alt-d deletes a word.