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ACI

3I0-012 · Question #185

How would you delta hedge an `at-the-money' long call option?

The correct answer is A. Go short of the underlying commodity equal to 50% of the size of the option contract. See the full explanation below for the reasoning.

Question

How would you delta hedge an `at-the-money' long call option?

Options

  • AGo short of the underlying commodity equal to 50% of the size of the option contract
  • BGo long of the underlying commodity equal to 50% of the size of the option contract
  • CGo long of the underlying commodity equal to the full size of the option contract
  • DGo short of the underlying commodity equal to the full size of the option contract

How the community answered

(48 responses)
  • A
    79% (38)
  • B
    6% (3)
  • C
    10% (5)
  • D
    4% (2)

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