Multiple Choice
You are short a put on stock and have delta-hedged yourself using the stock.The delta of the put is and the gamma of the put is .If the price of the underlying registers an increase of $0.50,to maintain your delta-hedge,you must
A) Sell 0.04 units of the stock.
B) Buy 0.04 units of the stock.
C) Sell 0.02 units of the stock.
D) Buy 0.02 units of the stock.
(e) None of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q19: The delta of a call option is
Q20: You hold a straddle on a stock
Q21: You hold a straddle on a stock
Q22: A stock is trading at $24.A
Q23: A stock is trading at $80.You
Q25: A stock is trading at $20.A one-month
Q26: A stock is trading at $20.A
Q27: You hold a portfolio of a long
Q28: Which of the following statements is true?
Q29: The vega of a _ is highest