Question: 12. You write a call option on Amazon stock for a premium of $20. You find that the delta of the call option is 1,

12. You write a call option on Amazon stock for a premium of $20. You find that the delta of the call option is 1, how do you hedge your position against price changes? A. Long a put with the same exercise price and maturity on Amazon stock. B. Short a put with the same exercise price and maturity on Amazon stock. C. Long 1 shares of Amazon stock. D. Short 1 shares of Amazon stock
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
