Assuming that you are holding the following option portfolio on Extreme Plc stocks Option Type Position Delta of Options Gamma of Options CALL 300 0 35 0 02 CALL 500 0 50 0 015 PUT 300 0 65 0 025 PUT 200 0 45 0 045 What is the aggregate delta of this portfolio What is the aggregate gamma of this portfolio Suppose you decide to both delta hedge and gamma hedge your portfolio using only the first call in the table How many of the calls should you use and what position in the stock is now required Why would you want to both delta hedge and gamma hedge Assuming that you are the financial controller of Modern Jeweler Company Your production manager has indicated today that he she requires 5,000 grams of 22K gold 5,000 grams of pure silver, 3,000 grams of red copper and 3,000 grams of Platinum on 15 th September 2022 to cater for a special order At the same time your sales manager indicated that the company received an order to sell 25,000 grams of minted gold coins in an open market at the specified minted gold market price Your procurement manager identified the price trends of the above listed metal commodities The trend is as follows Metal commodity Spot Price gram Price trend by 15 th September 22K Gold RM600 00 Anticipated to increase by 20 Pure Silver RM4 50 Anticipated to decrease by 10 Red Copper RM 0 05 Anticipated to be unchanged Platinum RM200 00 Anticipated to increase by 25 Minted Gold Coin RM350 00 Anticipated to decrease by 10 If all the above listed metal commodities have an exact futures market contracts for October 2022, and each of the listed metal commodity has a standard contract size is 100 grams Indicate the positions you will take in each of the respective October futures contracts on each of the commodity listed in the above table in order to keep your cash flows stable on 15 th September 2022

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Assuming that you are holding the following option portfolio on Extreme Plc stocks. Option Type Position Delta of Options Gamma of Options CALL 300 0.35

Assuming that you are holding the following option portfolio on Extreme Plc stocks.

Option Type	Position	Delta of Options	Gamma of Options
CALL	300	0.35	0.02
CALL	-500	0.50	0.015
PUT	-300	-0.65	0.025
PUT	-200	-0.45	0.045

What is the aggregate delta of this portfolio?

What is the aggregate gamma of this portfolio?

Suppose you decide to both delta hedge and gamma hedge your portfolio using only the first call in the table. How many of the calls should you use and what position in the stock is now required?

Why would you want to both delta hedge and gamma hedge?

Assuming that you are the financial controller of Modern Jeweler Company. Your production manager has indicated today that he/she requires 5,000 grams of 22K gold; 5,000 grams of pure silver, 3,000 grams of red-copper and 3,000 grams of Platinum on 15^th September 2022 to cater for a special order. At the same time your sales manager indicated that the company received an order to sell 25,000 grams of minted gold coins in an open market at the specified minted gold market price.

Your procurement manager identified the price trends of the above listed metal commodities. The trend is as follows:

Metal commodity	Spot Price /gram	Price trend by 15^th September
22K Gold	RM600.00	Anticipated to increase by 20%
Pure Silver	RM4.50	Anticipated to decrease by 10%
Red-Copper	RM 0.05	Anticipated to be unchanged
Platinum	RM200.00	Anticipated to increase by 25%
Minted Gold Coin	RM350.00	Anticipated to decrease by 10%

If all the above listed metal commodities have an exact futures market contracts for October 2022, and each of the listed metal commodity has a standard contract size is 100 grams.

Indicate the positions you will take in each of the respective October futures contracts on each of the commodity listed in the above table in order to keep your cash flows stable on 15^th September 2022?