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I need an example of a Gamma Neutral Hedge

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I need an example of a Gamma Neutral Hedge
Answered Same Day Dec 26, 2021

Solution

David answered on Dec 26 2021
121 Votes
Neutralizing Gamma
Gamma can be neutralized by buying and selling an option of the same underlying asset and it
will result in gamma to be equal to zero or very close to zero.
Call Option (On a Stock For Example Stock ABC for both the options):
Call option strike price $40 and gamma of 0.140...
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