CFA Practice Question

There are 227 practice questions for this study session.

CFA Practice Question

Suppose your position is short a put option and long a share of underlying stock. The gamma of your portfolio is ______.
A. >=0
B. <= 0
C. either zero, positive, or negative, depending on the put option's exercise price and time to maturity.
Explanation: The gamma of a stock is zero, and the gamma of an option is always non-negative. You are short gamma (short option).

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