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3I0-012 · Question #247

3I0-012 Question #247: Real Exam Question with Answer & Explanation

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Question

How would you delta hedge a deeply "in-the-money" short put 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 more than 50% of the full size of the option contract
  • DGo short of the underlying commodity equal to more than 5O% of the full size of the option contract

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