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How Would You Delta Hedge a Deeply "In-The-Money" Short Put

Question 271

Multiple Choice

How would you delta hedge a deeply "in-the-money" short put option?


A) Go short of the underlying commodity equal to 50% of the size of the option contract
B) Go long of the underlying commodity equal to 50% of the size of the option contract
C) Go long of the underlying commodity equal to more than 50% of the full size of the option contract
D) Go short of the underlying commodity equal to more than 5O% of the full size of the option contract

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