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)- A79% (38)
- B6% (3)
- C10% (5)
- D4% (2)
Community Discussion
No community discussion yet for this question.