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9. Suppose you delta hedge a put option position by buying stocks. If stock price moves up by 10%, what will happen? Assuming all other
9. Suppose you delta hedge a put option position by buying stocks. If stock price moves up by 10%, what will happen? Assuming all other things stay the same except for the stock price change. A. Your hedged position will generate profits because of positive gamma. B. Your hedged position will generate profits because what hedging does is to protect against losses at the same time to maintain profits. C. Your hedged position will generate losses because your put option will lose value and the leverage inherent in option position magnifies the losses. D. Your hedged position will generate neither profit nor loss
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