Question: True/False Question - please explain. Portfolio A is long 100 at-the-money European call options on a stock. Portfolio B is the replicating portfolio for portfolio

True/False Question - please explain. Portfolio A is long 100 at-the-money

True/False Question - please explain.

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. 11. The current delta of the option is 0.50 . 12. If the stock price increases, the value of portfolio A decreases. 13. 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

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