A Call Option on a Stock Has a Delta of 0.3.A

question 7

Multiple Choice

A call option on a stock has a delta of 0.3.A trader has sold 1,000 options.What position should the trader take to hedge the position?

• A) Sell 300 shares
• B) Buy 300 shares
• C) Sell 700 shares
• D) Buy 700 shares

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Definitions:

Language Learning

The process of acquiring the ability to understand, speak, read, and write in one or more languages besides one's native language.

Single-Word Utterance

A stage in language development where children communicate using individual words to express ideas, desires, or needs.

Adult Height

The final stature an individual achieves after the completion of growth, largely determined by genetics and environmental factors.

Immunization

A process that stimulates the body’s immune system by causing production of antibodies to defend against attack by a particular contagious disease. Creation of antibodies may be accomplished either naturally (by having the disease), by injection, by drops that are swallowed, or by a nasal spray.