(10 Points) Your firm owns 100 puts. Each put has a delta of 0.40, gamma of 0.04 and theta of 7.3. The underlying price is $100.0. (a) How many shares should you buy or short in order to delta-hedge this position? (b) After you have delta hedged the position, how much would you expect to make if, by the end of the next day, the stock moved up 1\%. Down 1\%? Assume 365 days a year (hence dt=365.01 for 1 day) and 0% interest rate. (c) If the stock moves up 4% (on the same day), how many more shares of stock should you buy or short to keep your position delta neutral? (10 Points) Your firm owns 100 puts. Each put has a delta of 0.40, gamma of 0.04 and theta of 7.3. The underlying price is $100.0. (a) How many shares should you buy or short in order to delta-hedge this position? (b) After you have delta hedged the position, how much would you expect to make if, by the end of the next day, the stock moved up 1\%. Down 1\%? Assume 365 days a year (hence dt=365.01 for 1 day) and 0% interest rate. (c) If the stock moves up 4% (on the same day), how many more shares of stock should you buy or short to keep your position delta neutral