CFA Practice Question

There are 227 practice questions for this study session.

CFA Practice Question

Suppose your position is short a call option and long a share of underlying stock; what can you say about the gamma of your portfolio?

A. You are gamma-neutral.
B. You are long gamma.
C. You are short gamma.
Correct Answer: C

The gamma of a stock is zero, so you are short gamma (short option).

User Contributed Comments 0

You need to log in first to add your comment.