A Position in Stocks and Options That Is Hedged with Respect

question 23

Multiple Choice

A position in stocks and options that is hedged with respect to fluctuations in the price of the underlying asset is said to be

• A) stable.
• B) delta neutral.
• C) volatility neutral.
• D) riskless.
• E) none of these.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Bluetooth Speakers

Bluetooth speakers are portable audio devices that wirelessly connect to smartphones, tablets, or computers, allowing for music and other audio playback anywhere.

Expectation

The anticipation or belief regarding a future event or outcome.

Price Rise

an increase in the cost of goods or services over time, also known as inflation in an economic context.