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The delta of a traders portfolio is -2100 relative to the price of gold (per ounce). How much does the trader gain or lose if
The delta of a traders portfolio is -2100 relative to the price of gold (per ounce). How much does the trader gain or lose if the price of gold drops $10? How can the trader become delta neutral by taking a position in forward contracts on gold? Explain why this works.
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