BIC owns 51,750 shares of Smith & Oates. The shares are currently priced at $69. A call

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BIC owns 51,750 shares of Smith & Oates. The shares are currently priced at $69. A call option on Smith & Oates with a strike price of $70 is selling at $3.50 and has a delta of .69. How many call options should be written to make BIC’s overall position delta-neutral? Should the calls be purchased or written? p-69

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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