A Call Option on an Asset Has a Delta of 0.4

question 4

Short Answer

A call option on an asset has a delta of 0.4. A trader has sold 2000 options and wants to create a delta-neutral position.
i) Should the trader take a long or short position in the asset? _ _ _ _ _ _
ii) How many units of the asset should be bought or sold? _ _ _ _ _ _

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Allied Health Care

A sector of healthcare that includes a variety of professions and services, often providing diagnostic, therapeutic, and direct patient care and support services.

Detail-oriented

A characteristic of being highly attentive and focused on all small parts or aspects of a task or situation.

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Showing consideration for others in manners, behavior, and speech.

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Descriptive of an individual exhibiting polite, courteous, and socially appropriate behavior.