If a position has high gamma, what does that imply for hedging?

If a position has high gamma, what does that imply for hedging?

• A. Delta will change slowly with underlying moves; hedging needs little rebalancing.
• B. Delta changes quickly with underlying moves; hedging requires frequent rebalancing.
• C. Vega dominates hedging decisions and delta hedges are unnecessary.
• D. Time decay is the primary driver of hedging cost.

Answer: (B)