Trader take to hedge the position


Problem:

A call option on a stock has a delta of 0.3. A trader has sold 1,000 options. What position should the trader take to hedge the position?

Select one:

a. Buy 300 shares

b. Buy 700 shares

c. Sell 300 shares

d. Sell 700 shares

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Finance Basics: Trader take to hedge the position
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