You Hold a Portfolio of a Long Position in a Call

question 1

Multiple Choice

You hold a portfolio of a long position in a call and a short position in a put,both for the same strike and maturity,both written on a non-dividend paying stock.Which of the following statements is most correct?

• A)The delta of the portfolio increases when the stock price increases.
• B)The delta of the portfolio stays the same when the stock price increases.
• C)The delta of the portfolio decreases when the stock price increases.
• D)The delta of the portfolio may increase or decrease when the stock price increases.

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Definitions:

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