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Answer: Gamma negative position
A gamma-negative position is riskier because gamma measures the rate of change of delta with respect to the underlying asset price. When gamma is negative, delta and the underlying asset price move inversely - as the asset price increases, delta decreases, and vice versa. This creates larger position value fluctuations compared to delta-neutral positions (which are designed to be insensitive to small price changes) or gamma-positive positions (where delta and asset price move in the same direction).
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A
Delta neutral position
B
Gamma positive position
C
Gamma negative position
D
Delta positive position
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