CFA Practice Question

There are 227 practice questions for this study session.

CFA Practice Question

Assume a portfolio consists of 10,000 stocks, and a call option has a delta of 0.5. To construct a delta-neutral portfolio, one must sell ______.
A. 5,000 options
B. 10,000 options
C. 20,000 options
Explanation: NH = -10,000/0.5 = -20,000

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