An options dealer holds 1,000 shares of a stock. The stock is trading at $70 per share. At-the-money call options have a delta of 0.60. 1. What is the number of call options the dealer must sell to create a delta hedge? 2. If the delta changes from 0.6 to 0.7, what needs to be done to maintain a delta-neutral portfolio? 3. If the stock price drops by $3 and the call price falls to $1.25, what is the delta of the call?