Why B and not C? The answer explanation says nothing about accepting / not accepting the account without full knowledge of West’s other accounts. To me, this phrase in the answer choice is referring to the fact that he is promising West that DIS will have no problem managing all of West’s accounts, even though West has private equity investments that DIS is not equipped for.
The answer choice says “In a delta hedge, a short position in call options is offset with a long position in the underlying security (or vice versa).” By “vice versa”, I assume this means a long position in stock offset with a short position in calls. But isn’t this a covered call strategy and if so, is it accurate to say that a covered call is a type of dynamic hedging strategy, as described above, where calls must be continually bought and sold?