A Call Option on a Stock Has a Delta of 0.3.A

question 7

Multiple Choice

A call option on a stock has a delta of 0.3.A trader has sold 1,000 options.What position should the trader take to hedge the position?

• A) Sell 300 shares
• B) Buy 300 shares
• C) Sell 700 shares
• D) Buy 700 shares

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Definitions:

Insomnia

An ailment marked by challenges in both initiating and maintaining sleep.

Social-cognitive Perspective

A psychological approach that emphasizes the influence of cognitive processes and social contexts on behavior.

Disorganized Thinking

A state of thought characterized by illogical or incoherent thought processes, often seen in severe mental disorders.

Disturbed Perceptions

Altered or distorted perception of reality, often experienced in mental health disorders.