Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following 4 options on TSLA: ( 1 ) 1 - year 3 0 - delta call, ( 2 ) 1 - year 3
"Consider the following options on TSLA: year delta call, year delta put, year delta put, year delta call.
a Which of the option's strike price is the closest to the strike price of a year delta call?
b If we are long million shares on each of the options and want to neutralize the delta exposure of each option contract separately with TSLA stock, which of the option contracts needs the most long stock position to neutralize its delta?
c which of the option contracts needs the most short stock position to neutralize its delta?
d What's the total delta of the portfolio that includes million shares long position in each of the option contracts
Answer the questions using a clean integer number with no decimal, no dots, no parentheses
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started