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A call option on an asset has a delta of 0.6. A trader has sold 1,000 options and wants to create a delta-neutral position. 1

A call option on an asset has a delta of 0.6. A trader has sold 1,000 options and wants to create a delta-neutral position.

1 Should the trader take a long or short position in the asset?

2. How many units of the asset should be bought or sold?

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