Question: Take the How to Hedge spreadsheet on the CD and rewrite using VB, C++, or other code. Now modify the code to do the following.

Take the How to Hedge spreadsheet on the CD and rewrite using VB, C++, or other code. Now modify the code to do the following.

(a) Allow for arbitrary fixed period between rehedges. Observe how the hedging error varies with this period.

(b) Incorporate bid-offer spread on each transaction in the underlying.

(c) As above but now for the delta hedging of an entire portfolio of vanilla options of varying type, strikes and expiration. Write the code so that you can perform many thousands of simulations, and output statistical properties of the hedging error.

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