What should traders do to neutralize delta of a short position in 3,000 options
ID: 2769586 • Letter: W
Question
What should traders do to neutralize delta of a short position in 3,000 options when the delta of a long position in each option is 0.4?
purchase (or long) 1200 shares of the underlying stock.
purchase (or long) 3000 shares of the underlying stock.
sell (or short) 1200 shares of the underlying stock
sell (or short) 3000 shares of the underlying stock
A.purchase (or long) 1200 shares of the underlying stock.
B.purchase (or long) 3000 shares of the underlying stock.
C.sell (or short) 1200 shares of the underlying stock
D.sell (or short) 3000 shares of the underlying stock
Explanation / Answer
C.sell (or short) 1200 shares of the underlying stock
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