Reddit

##### 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

Financial Risk Manager Part 1

Get started today

Quick Answer

Quick Answer

Comments (0)

Get started today

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.

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.

Comments (0)