question archive Which of the following statements is (are) correct? (i) Option Delta can be hedged with an appropriate position in the underlying stock

Which of the following statements is (are) correct? (i) Option Delta can be hedged with an appropriate position in the underlying stock

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Which of the following statements is (are) correct? (i) Option Delta can be hedged with an appropriate position in the underlying stock. (ii) Option Delta can be hedged with an appropriate position in another option on the same stock. (iii) Option Gamma can be hedged with an appropriate position in the underlying stock. (iv) Option Gamma can be hedged with an appropriate position in another option on the same stock.

Option 1

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Option 2

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