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1 An option has delta = 0.5. A portfolio has delta=-700. How many options are necessary to hedge the portfolio? 2 In the above question,
1 An option has delta = 0.5. A portfolio has delta=-700. How many options are necessary to hedge the portfolio?
2 In the above question, if the delta rises to 0.6 what change is necessary to the holdings of options?
3 How can Gamma be hedged?
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