- CFA Exams
- CFA Level I Exam
- Study Session 14. Derivatives
- Reading 38. Valuation of Contingent Claims
- Subject 6. Option Greeks and Implied Volatility

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**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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