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:

Anticipation

The act of expecting or foreseeing something, often involves preparing for future events or changes.

Prevention

The action of stopping something from happening or arising, especially in terms of health and disease.

Proaction

The approach of taking strategic, anticipatory actions to create or control future developments, rather than merely reacting to events as they happen.

Genius Bar

A tech support station located inside Apple's retail stores, offering personal support and troubleshooting services.