You Are Long a Portfolio of Vanilla Call Options

question 8

Multiple Choice

You are long a portfolio of vanilla call options.Which of the following will help you hedge away your vega risk?

• A)Buying a portfolio of in-the-money vanilla put options.
• B)Buying a portfolio of out-of-the money vanilla put options.
• C)Buying a portfolio of in-the-money cash-or-nothing put options.
• D)Buying a portfolio of out-of-the money cash-or-nothing put options.

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Definitions:

Unfair Labor Practice Strike

A strike undertaken by workers to protest actions by the employer that are considered illegal or unjust under labor laws.

Jurisdictional Strike

A strike action initiated by workers to contest the assignment of work tasks based on the boundaries of union agreements or trades.

Recognition Strike

A labor action taken by workers to gain acknowledgment from their employer regarding the legitimacy of their union or bargaining unit.

Economic Strike

A work stoppage conducted by employees to demand higher wages, better benefits, or improved working conditions, as opposed to strikes over rights or legal issues.