Answer: Gamma-negative, delta-positive

## Explanation Let's analyze the risk characteristics: **Gamma-negative positions:** These are short gamma positions (typically short options). Gamma-negative positions are exposed to large losses from large price movements in either direction. **Delta-positive positions:** These are long positions in the underlying asset, exposed to directional risk if prices decline. **Gamma-negative, delta-positive (Option C):** This is the most dangerous combination because: - Gamma-negative means the position loses money from large price movements - Delta-positive means the position is already long the underlying - If prices decline significantly, the delta-positive position loses value, and the gamma-negative position amplifies these losses **Other positions:** - A: Gamma-negative, delta-neutral - risky but less than C - B: Gamma-positive, delta-positive - less risky as gamma-positive provides some protection - D: Gamma-positive, delta-neutral - least risky among these **Correct Answer: C**

Author: LeetQuiz Editorial Team