When you are long an option and you delta hedge, you want   A. traders talking a lot about other asset classes and ignore your underlying   B. volatility to increase and the underlying to move around a lot   C. the cost of carry to narrow   D. volatility to decrease and the underlying to just stop moving

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter9: The Financial Markets And The Economy: The Tail That Wags The Dog
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  1. When you are long an option and you delta hedge, you want

      A.

    traders talking a lot about other asset classes and ignore your underlying

      B.

    volatility to increase and the underlying to move around a lot

      C.

    the cost of carry to narrow

      D.

    volatility to decrease and the underlying to just stop moving

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