Delta Neutral

question 41

Multiple Choice

Delta neutral

• A) is the volatility level for the stock that the option price implies.
• B) is the continued updating of the hedge ratio as time passes.
• C) is the percentage change in the stock call-option price divided by the percentage change in the stock price.
• D) means the portfolio has no tendency to change value as the underlying portfolio value changes.

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Definitions:

Drop-Shipping

A retail fulfillment method where a store doesn't keep the products it sells in stock, instead, when an item is sold, the product is shipped directly from the wholesaler or manufacturer to the customer.

Carrier Delivery

The service of transporting goods to a designated location via a shipping or freight carrier.

Manufacturer Storage

The space or facility designated by manufacturers for storing raw materials, work-in-progress, or finished goods before they are distributed.

Distributor Storage

A logistics strategy where products are stored at distributor-operated warehouses, facilitating faster delivery services to customers.