Question: Which derivatives position has zero payoff at maturity when the underlying stock goes bankrupt and the stock price falls to zero? a. Long put b.

Which derivatives position has zero payoff at maturity when the underlying stock goes bankrupt and the stock price falls to zero?

a. Long put

b. Long call

c. Short futures

d. Long futures

For a deep in-the-money call option, its delta ________ as time approaches expiry.

a.

decreases

b.

changes randomly

C.

Increases

d.

varies between -1 and 0

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