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

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Population Pyramid

A graphical illustration that shows the distribution of various age groups in a population, which forms the shape of a pyramid when the population is growing.

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A graphical representation showing the distribution of a population by age and sex.

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Individuals who have reached an advanced stage of life, often characterized by increased age and experience.

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