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:

Brain Activity

The functioning and processes occurring within the brain, including neural activity and cognitive operations.

Electroencephalogram

An electroencephalogram, or EEG, is a test that measures electrical activity in the brain to help diagnose neurological conditions.

Brain Wave Patterns

The electrical activity in the brain, categorized in various types like alpha, beta, and delta waves, each associated with different states of consciousness.

Electrical Activity

The movement of electrically charged particles in biological tissues or electronic systems, fundamental for nervous system function and electronic devices' operation.