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You are a market maker and a client purchases a call option from you. How do you, as market maker, hedge first-order underlying price risk?

  1. You are a market maker and a client purchases a call option from you.

    1. How do you, as market maker, hedge first-order underlying price risk?

    2. Assuming you have hedged first-order underlying price risk, how would you describe

      theta and gamma exposure?

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