If a firm holds a position in an option,it can delta and gamma hedge the position by adding a position in another option.

Name: If a firm holds a position in an option,it can delta and gamma hedge the position by adding a position in another option.
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Quizplus · Accepted Answer

Delta and gamma hedging typically involves taking positions in the underlying asset or possibly futures on the underlying asset, not by adding another option position.

If a Firm Holds a Position in an Option,it Can