Q1: We sold 10 call option contracts (recalling that one contract represents 100 shares of stock)....
Q1: We sold 10 call option contracts (recalling that one contract represents 100 shares of stock). As of today the delta is 0.6. How many shares of stock should we hold to be delta neutral?
Q2: The delta for put option is -0.4. What is delta for corresponding call option(same strike and maturity)?
Homework Answers
1.
=Delta of call*number of contracts*contract size
=0.6*10*100
=600
2.
=Delta of Put+1
=-0.4+1
=0.6
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Q1: We sold 10 call option contracts (recalling that one
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Question 7:
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please just do question 7. thank you Silicon MicroSystems, Inc. (SMSI) stock is currently selling for...
please just do question 7.
thank you
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32 33 please!!!
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For simplicity, each option is assumed to be written on a single
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stock and would like to make his portfolio delta-neutral and gamma
neutral over the night. The current stock price of ABC is $120, the
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Question 7:
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please just do question 7.
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32 33 please!!!
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