Options Sellers Who Are Delta-Hedging Would Most Likely

question 49

Multiple Choice

Options sellers who are delta-hedging would most likely

• A)sell when markets are falling.
• B)buy when markets are rising.
• C)sell when markets are falling and buy when markets are rising.
• D)sell whether markets are falling or rising.

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Definitions:

FICO Score

A credit score measuring a borrower's likely ability to repay a loan. A person’s FICO score will range between 300 and 850. A score of 700 or more indicates that the borrower’s credit standing is good. FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score.

Mortgage Default Rate

The percentage of borrowers who fail to make their mortgage payments on time, risking foreclosure.

Housing Prices

The cost associated with buying or renting properties, including houses and apartments.

Mortgage Default Rate

The percentage of borrowers who fail to make required loan payments on their mortgage.