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A European call option on a stock has a delta of 0.7 . A trader has written 1,000 call options and purchased 500 European put

image text in transcribed A European call option on a stock has a delta of 0.7 . A trader has written 1,000 call options and purchased 500 European put options on the same underlying stock, maturity, and strike price as the call. What position should the trader take to hedge the position? Do nothing. The trader is already hedged. Sell 850 shares. Buy 850 shares. Buy 400 shares. Sell 400 shares

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