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1) What's the position in the tradable option that will make the portfolio gamma neutral? 2) What's the position in the tradable option that will

image text in transcribed 1) What's the position in the tradable option that will make the portfolio gamma neutral?

2) What's the position in the tradable option that will make the portfolio vega neutral?

19.24. A financial institution has the following portfolio of over-the-counter options on sterling: Type Position Call Call Put Call - 1,000 - 500 -2,000 - 500 Delta Gamma Vega of option of option of option 0.50 2.2 1.8 0.80 0.6 0.2 -0.40 1.3 0.7 0.70 1.8 1.4 A traded option is available with a delta of 0.6, a gamma of 1.5, and a vega of 0.8

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