Question 10 European call options on silver mature in eight months. The current silver spot is $8 per ounce, the exercise price of the options is $8, the risk-free interest rate is 12% per annum. Looking at similar traded options on silver you have computed their implied volatility at 18% per annum. What is the delta of a short position in 1,000 European call options on silver? Explain in words the number you computed for the delta position. What initial spot position on silver is necessary for delta hedging? Assume no storage costs for silver