FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

A portfolio has two options: Option 1 is long call with a vega of 0.2 and option 2 is a short put with vega 0.4.

A portfolio has two options: Option 1 is long call with a vega of 0.2 and option 2 is a short put with vega 0.4.

Option 1 is to buy 50 shares and option 2 is to sell 80 shares. The options have the same gamma. What is the position vega of the portfolio?

A.42

B.- 22

C.-42

D. 22

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

2. Ask parents for suggestions about how their childs interests could be connected to the curriculum topics.

Answered: 1 week ago

Question

★★★★★
Complete the following chart, indicating the comparative attributes of the typical trust and estate by answering yes/no or explaining the differences between the entities where appropriate. Attribute...

Answered: 1 week ago

Question

★★★★★
QUESTION 7 TRUE OR FALSE: As long as you put the author's name at the end of the paragraph, you may use the author's exact words without needing quotation marks or a block indentation. True False...

Answered: 1 week ago

Question

★★★★★
Exercise 4 - 1 1 ( Algo ) Computing product cost per unit using plantwide method and activity - based costing LO P 1 , P 3 Consider the following data for two products of Vigano Manufacturing. Using...

Answered: 1 week ago

Question

★★★★★
Lemon Laws" are meant to: Group of answer choices decrease consumer confidence in the purchasing of cars. make selling cars less profitable for dealers. increase consumer confidence in the purchasing...

Answered: 1 week ago

Question

★★★★★
Refer to the table below to answer the following question Table 1: Production Possibilities for Simon's simple factory Nuts (units per day) 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Bolts (units...

Answered: 1 week ago

Question

★★★★★
Match the communication methods with their corresponding advantages in the table below: Table of communication methods and descriptions. Method A: Increases flexibility and reduces pressure. Method...

Answered: 1 week ago

Question

★★★★★
A. Patrimonio is a stockholder of ABC, Inc. which has 30,000 shares outstanding and 50,000 shares of authorized capital stock. There are eleven seats in the board of directors. 7. How many shares and...

Answered: 1 week ago

Question

★★★★★
28 S Sol-Motors is the only auto manufacturer in West Lidia, a country that prohibits the importation of cars. The graph below shows the demand and the costs for Sol-Motors. Costs and revenues (in...

Answered: 1 week ago

Previous Question Next Question