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Medium · Finance · Quant Trader interview question · delta-neutral, hedging, options, quantitative-reasoning
You are managing a portfolio and currently hold a long position of 100 call options on a particular stock. Each call option has a delta of 0.5. To create a delta-neutral hedge, you need to offset the delta of your option position by taking an opposing position in the underlying stock. How many shares of the stock do you need to sell to achieve delta neutrality?