Question: In practice, how effective is using the Black Scholes model to delta-hedge an option's exposure to movements in the underlying stock price? A. Delta hedging

In practice, how effective is using the Black Scholes model to delta-hedge an option's exposure to movements in the underlying stock price?

A. Delta hedging can be very effective, especially for small changes in stock price

B. Delta hedging can be very effective, especially for large changes in stock price

C. Delta hedging is perfect

D. Delta heging is completely ineffective

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