A portfolio which has a delta value of -0.25 is:

Question

Quizplus · Accepted Answer

Delta measures the sensitivity of the portfolio value to changes in the underlying assets. A positive delta means the portfolio will increase in value as the underlying assets increase in value, while a negative delta means the portfolio will decrease in value as the underlying assets increase in value. In this case, the delta value is negative (-0.25) which indicates that the portfolio will lose value as the underlying assets increase in value, making it a bearish portfolio.

A Portfolio Which Has a Delta Value of -0