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The delta of a European call option on non-dividend paying stock is 0.50. If you want to creat a delta hedging for a long call
The delta of a European call option on non-dividend paying stock is 0.50. If you want to creat a delta hedging for a long call option position, you should _______________.
A) short 0.5 shares of the underlying stock for each call option purchased.
B) long 0.5 shares of the underlying stock for each call option purchased.
C) short 2 shares of the underlying stock for each call option sold.
D) long 2 shares of the underlying stock for each call option sold.
D) long 2 shares of the underlying stock for each call option sold.
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