How Would You Delta Hedge a Deeply "In-The-Money" Short Put

question 271

Multiple Choice

How would you delta hedge a deeply "in-the-money" short put option?

• A) Go short of the underlying commodity equal to 50% of the size of the option contract
• B) Go long of the underlying commodity equal to 50% of the size of the option contract
• C) Go long of the underlying commodity equal to more than 50% of the full size of the option contract
• D) Go short of the underlying commodity equal to more than 5O% of the full size of the option contract