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Suppose the Stock Price Is $50, the Call Delta Is

Question 21

Multiple Choice

Suppose the stock price is $50, the call delta is 0.600 and the put delta is -0.400. A portfolio of 1,000 shares, writing calls on 700 shares, and buying puts on 300 shares has a position delta of


A) 460
B) 700
C) 1200
D) 1300

Correct Answer:

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