Enter a T if the statement is true and F if it is false. Explain your choice.

Portfolio A is long 100 at-the-money European call options on a stock. Portfolio B is the replicating portfolio for portfolio A and contains 50 shares of stock and a position in the risk-free asset.

i) The current delta of the option is 0.50

ii) If the stock price increases, portfolio B will need to sell some stock in order to maintain its status as the replicating portfolio for portfolio A.

Please answer both sub-parts (i and ii) and give short explanations.