Answer: Buy 3,630 shares of stock

## Explanation When selling a put option: - The position has negative delta exposure - To delta hedge, we need to create a position with positive delta Given: - Put delta = -0.363 - Position: Short put (sold put) - Number of shares: 10,000 **Delta calculation:** - Short put delta = -(-0.363) = +0.363 - Total delta exposure = 10,000 × 0.363 = 3,630 Since the short put position has positive delta of 3,630 shares equivalent, to hedge we need to **take the opposite position** by **buying 3,630 shares** of stock. This creates a delta-neutral position where the positive delta from the short put is offset by the negative delta from the short stock position.

Author: LeetQuiz Editorial Team