Q 2 What is an option's delta Write down the formula for calculating an option's delta ( 5 points ) Q 3 How do you calculate the risk minimizing hedge ratio using an option's delta ( 5 points )

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Q 2 . What is an option's delta? Write down the formula for calculating an option's delta. ( 5 points ) Q 3 . How

2 .

What is an option's delta? Write down the formula for calculating an option's delta.

(5

points

)

3 .

How do you calculate the risk minimizing hedge ratio using an option's delta?

(5

points

)

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