Q-54. A riskier position is one that is expected to move around a lot in value. A delta neutral position should not change in value as the value of the underlying asset changes. This eliminates Choice A and Choice D. Choice C is correct because a gamma-negative position means that delta and the change in the underlying asset move inversely with each other.
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A
Delta neutral position
B
Gamma positive position
C
Gamma negative position
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D
Delta positive position
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##### Q-54. A riskier position is one that is expected to move around a lot in value. A delta neutral position should not change in value as the value of the underlying asset changes. This eliminates Choice A and Choice D. Choice C is correct because a gamma-negative position means that delta and the change in the underlying asset move inversely with each other. | Financial Risk Manager Part 1 Quiz - LeetQuiz