You are short a put on $A B C$ stock and have delta-hedged yourself using the stock.The delta of the put is $- 0.71$ and the gamma of the put is $+ 0.04$ .If the price of the underlying registers an increase of $0.50,to maintain your delta-hedge,you must

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When the price of the underlying stock increases, the delta of the put option will change due to gamma. The change in delta ($\Delta \delta$) can be calculated as gamma ($\Gamma$) times the change in the stock price ($\Delta S$). Here, $\Delta \delta = \Gamma \times \Delta S = 0.04 \times 0.50 = 0.02$. Since you are short the put, an increase in delta means you need to buy additional shares to remain delta-neutral. Therefore, you need to buy 0.02 units of the stock.

You Are Short a Put On ABCA B CABC Stock and Have Delta-Hedged Yourself Using the Stock

You Are Short a Put On $A B C$ Stock and Have Delta-Hedged Yourself Using the Stock