A Delta-Hedged Position Is One in Which the

question 24

Multiple Choice

A delta-hedged position is one in which the

• A)combined spot and derivatives positions have a delta of one.
• B)spot position has a delta of zero.
• C)derivatives position has a delta of zero.
• D)combined spot and derivatives positions have a delta of zero.
• E)combined spot and derivatives positions have a gamma of zero.

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Definitions:

Dispute

A disagreement or conflict between parties, often requiring resolution through legal or official means.

ADR Clauses

Provisions in a contract that require parties to resolve disputes through alternative dispute resolution methods, such as arbitration or mediation, instead of litigation.

Employer

An individual or organization that hires and pays people to perform work or services.

Employment Relationship

A legal and formal relationship between an employer and an employee characterized by the payment of wages or salary in exchange for work performed.