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Basic Question 29 of 32

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.

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

interpret each of the option Greeks;

describe how a delta hedge is executed;

describe the role of gamma risk in options trading;

define implied volatility and explain how it is used in options trading.

CFA® 2025 Level II Curriculum, Volume 5, Module 32.