11. how many calls should the market-maker buy or sell?

Q11 Assume the Black-Scholes framework. You are given: The current price of a stock is 100. The stock pays dividends continuously at a rate proportional to its price. The dividend yield is 3%. The volatility of the stock is 28%. The continuously compounded expected rate of return on the stock is 15%. The continuously compounded risk-free interest rate is 5%. A market-maker writes 1,000 2-year 90-strike European put options on the stock. The market-maker then delta hedges the position by using 2-year 90-strike European call options on the stock. How many calls should the market-maker buy or sell? Q11 Assume the Black-Scholes framework. You are given: The current price of a stock is 100. The stock pays dividends continuously at a rate proportional to its price. The dividend yield is 3%. The volatility of the stock is 28%. The continuously compounded expected rate of return on the stock is 15%. The continuously compounded risk-free interest rate is 5%. A market-maker writes 1,000 2-year 90-strike European put options on the stock. The market-maker then delta hedges the position by using 2-year 90-strike European call options on the stock. How many calls should the market-maker buy or sell