An options dealer has a short position of 6,000 in DELCO call options. The call options have a delta of 0.60, a gamma of 0.04 and vega of 6. (please show workings)

116. The option dealers portfolio has a: (a) delta of -3,600 and a gamma of -240 (b) delta of 3,600 and a gamma of -240 (c) delta of -2,400 and a gamma of 240 (d) gamma of 240 and a vega of 1,000.

117. The dealer can make his option portfolio delta-neutral by: (a) buying 2,400 DELCO stock (b) selling 1,000 DELCO stock (c) buying 3,600 DELCO stock (d) buying 600 DELCO stock.

118. Assume that a DELCO put option with a delta of -0.50 and a gamma of 0.05 is available. The dealer can make his initial portfolio both delta-neutral and gamma-neutral by: (a) buying 3,600 DELCO stock (b) buying 3,360 DELCO stock and selling 480 DELCO puts (c) selling 3,600 DELCO stock and buying 480 DELCO puts (d) buying 6,000 DELCO stock and 4,800 DELCO puts.