Assume that there is a put option with a strike price of 1685 which is also listed on the stock exchange. Remember 1 option contract has a value of DKK 10,000 in the underlying index. The index value can be set to 1680 The option has a term of 1/4 year Volatility can be set to 18.5% (annual vol) The interest rate is assumed to be 2% Portfolio worth is 180,000,000 DKK and beta 0.84 The option can be bought and sold at the same price How many options do you need to trade to hedge the portfolio, and do you need to buy or sell. Assume that there is a put option with a strike price of 1685 which is also listed on the stock exchange. Remember 1 option contract has a value of DKK 10,000 in the underlying index. The index value can be set to 1680 The option has a term of 1/4 year Volatility can be set to 18.5% (annual vol) The interest rate is assumed to be 2% Portfolio worth is 180,000,000 DKK and beta 0.84 The option can be bought and sold at the same price How many options do you need to trade to hedge the portfolio, and do you need to buy or sell