- You are short a put on ABC stock and have delta-hedged yourself using the stock. The gamma of the put is +0.06. If the price of the underlying registers an increase of $2.00, to maintain your delta-hedge, you must:

A. Sell 0.06 units of stock

B. Sell 0.12 units of stock

C. Buy 0.12 units of stock

D. Buy 0.03 units of stock

- A stock is trading at $25. A three-month European put option with a strike of $40 costs $14.527 and has a theta of 1.594. Everything else held comstant, after 10 trading days (about 0.04 years), you expect the put price to be:

A. 15.00

B. 14.59

C. 14.46

D. 25.00