company X, stock price 43.61, strike price 44 maturity in 44 days, bid 1.19, ask 1.2 volume 111, implied volatility 22.63

stion 12 (3.25 pts): Suppose you have written 10 ATM call option on the company you have picked. What shall you do to hedge your position (i.e.: make you position delta-neutral)? (1.25 pts) If the stock price suddenly dropped by 2%, what shall you do to keep the position delta- neutral? Assume, the drop happens on the same day you have obtained your data and everything else remains the same. (2 pts) If the stock price suddenly jumped by 2%, what shall you do to keep the position delta- neutral? Assume, the jump happens on the same day you have obtained your data and everything else remains the same. (2 pts) stion 12 (3.25 pts): Suppose you have written 10 ATM call option on the company you have picked. What shall you do to hedge your position (i.e.: make you position delta-neutral)? (1.25 pts) If the stock price suddenly dropped by 2%, what shall you do to keep the position delta- neutral? Assume, the drop happens on the same day you have obtained your data and everything else remains the same. (2 pts) If the stock price suddenly jumped by 2%, what shall you do to keep the position delta- neutral? Assume, the jump happens on the same day you have obtained your data and everything else remains the same. (2 pts)