You Have Written a Put on a Call, Where the Underlying

question 19

Multiple Choice

You have written a put on a call, where the underlying call is written on a stock. To delta hedge yourself you can either go the underlying call or the underlying stock.

• A) short; short.
• B) short; long.
• C) long; short.
• D) long; long.

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Definitions:

Multiple Products

The strategy of offering a variety of different products within a company's portfolio to cater to different market segments or consumer needs.

Multiple Market Segments

Refers to the practice of dividing a target market into distinct subgroups of consumers, each with different needs or characteristics, to tailor marketing strategies more effectively.

Diverse Customer Needs

The variety and differences in preferences, requirements, and expectations among customers in a market.

Production Costs

Expenses associated with the manufacturing or production of goods, including materials, labor, and overhead costs.