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

question 21

Multiple Choice

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

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

---

Definitions:

Federal Gasoline Tax

A tax imposed by the federal government on the sale of gasoline.

Highway Maintenance

The process of keeping roads in safe and workable condition, including repairs, repaving, and cleaning activities.

U.S. Labor Force

The total number of individuals in the United States who are actively employed or seeking employment.

Federal

Pertaining to the central government of a country, as opposed to local or state governance.