A Portfolio of Derivatives on a Stock Has a Delta

question 11

Multiple Choice

A portfolio of derivatives on a stock has a delta of 2400 and a gamma of -10.An option on the stock with a delta of 0.5 and a gamma of 0.04 can be traded.What position in the option is necessary to make the portfolio gamma neutral?

• A) Long position in 250 options
• B) Short position in 250 options
• C) Long position in 20 options
• D) Short position in 20 options

Understand the priority of mortgages and the impact of registration on that priority.

Apply knowledge of mortgage financing in land development scenarios, including the perspectives of developers, builders, and purchasers.

Interpret the reasons behind varying interest rates for first and second mortgages.

Evaluate potential outcomes and options for parties involved in mortgage defaults.

---

Definitions:

Forms

In Platonic philosophy, the abstract, perfect, unchangeable concepts or ideals that transcend the physical world and embody the fundamental essence of reality.

Kant

Immanuel Kant, an influential German philosopher in the 18th century, known for his critical philosophy in epistemology, ethics, and aesthetics.

Constituted

Formed or made up from certain parts or elements; established or created in a specified manner or composition.

Categories

Fundamental classes or divisions used to organize concepts, objects, or experiences, especially in philosophy and logic.