Question
QUESTION 21 You own 600 shares of Bradley Co. stock that is currently priced at $33 a share. Given this price, the option delta for
QUESTION 21
You own 600 shares of Bradley Co. stock that is currently priced at $33 a share. Given this price, the option delta for a $35 call option on this stock is .63. How many $35 call options do you need to hedge against a $1 change in the price of the stock?
| A. | write 952 options | |
| B. | buy 952 options | |
| C. | write 1,212 options | |
| D. | buy 1,212 options |
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Entrepreneurial Finance
Authors: Simon Hulme, Chris Drew
1st Edition
1352009811, 978-1352009811
