Delta hedging.

You own $$35,000$ shares of Saturn Ltd$.$ common stock that is currently selling for $$52.$ A call option on Saturn with a

strike price of $$52$ is selling at $$4\mathrm{.}30$ and has a delta of $0\mathrm{.}54.$

a$.$ Determine the number of call option contracts necessary to create a delta$-$neutral hedge $($with sign!$).$

contracts.

Round your answer to closest integer.

b$.$ Calculate the total change in portfolio value for a $$0\mathrm{.}31$ decrease in the price of Saturn stock, keeping in mind

that you can only trade option contracts, not the individual options.

$

Round your answer to the nearest cent. USE EXCEL AND SHOW FORMULA