Q-56. In order to hedge a short call option position, a manager would have to buy enough of the underlying to equal the delta times the number of options sold. In this case, delta = 0.5, so for every two options sold, the manager would have to buy a share of the underlying security.
Exam-Like
A
Buy 50 shares
B
Sell 50 shares
C
Buy 100 shares
D
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Buy 200 shares
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##### Q-56. In order to hedge a short call option position, a manager would have to buy enough of the underlying to equal the delta times the number of options sold. In this case, delta = 0.5, so for every two options sold, the manager would have to buy a share of the underlying security. | Financial Risk Manager Part 1 Quiz - LeetQuiz