The folkwing data applies for a Calloption on 0ridental Petrokumioxy: 0O stock, 90:3122 OXC Calldetaik: C=2.6bK=32D.elt3=0.51 You sall 1 Calloption. Your total premiuminot er shared for selling this [all is $ You wish to offset the isk of selling this Call by delta hedging. You should buy shaigs of 0 for a total costinsing today's pricel of $ At this time the Call buyer's Break-Even stork prieg for 0y is $ One month later thesharepice of 0xy is $3723 and the Call buyer exercises their option. You delta hedged soyou alieady have some of the sharesyou mustdeliner; homenef you must now purehase [AGH FLOWTOYOU. The Callowner will pay you \$ for your 100shares. ENTER THISASA. POSITIWE NUMEER TO INDICATE ITISA.POSITWE CASH FLOWTO You. Add the rogt toyou to buy all 100 shaiesiNeGATIWE CASH FLOW] to what the Callominer paysyou (POSITIWE CASH FLOW]; Your iesult is $ Finally, to see the totaldolla effect for you fromdelta hedging. add the premiumyou were paid to the valueyou cakulated above. This isyour Profit' oasifiL] from selling 1 Calloption while delta hedging. Your PiL is $ PART 2: Consider what your PiL would have been if you had Not delta hedged, eg. you did not buy any shares of oxy when you sold the 1 Lalloption. Assuming the same valuesshown in PART 1 your PiL would be $ .IF THISISALOSS, ENTER YOUR RESULTASA NEGATIWE WALUE 'USE '- sizon. The folkwing data applies for a Calloption on 0ridental Petrokumioxy: 0O stock, 90:3122 OXC Calldetaik: C=2.6bK=32D.elt3=0.51 You sall 1 Calloption. Your total premiuminot er shared for selling this [all is $ You wish to offset the isk of selling this Call by delta hedging. You should buy shaigs of 0 for a total costinsing today's pricel of $ At this time the Call buyer's Break-Even stork prieg for 0y is $ One month later thesharepice of 0xy is $3723 and the Call buyer exercises their option. You delta hedged soyou alieady have some of the sharesyou mustdeliner; homenef you must now purehase [AGH FLOWTOYOU. The Callowner will pay you \$ for your 100shares. ENTER THISASA. POSITIWE NUMEER TO INDICATE ITISA.POSITWE CASH FLOWTO You. Add the rogt toyou to buy all 100 shaiesiNeGATIWE CASH FLOW] to what the Callominer paysyou (POSITIWE CASH FLOW]; Your iesult is $ Finally, to see the totaldolla effect for you fromdelta hedging. add the premiumyou were paid to the valueyou cakulated above. This isyour Profit' oasifiL] from selling 1 Calloption while delta hedging. Your PiL is $ PART 2: Consider what your PiL would have been if you had Not delta hedged, eg. you did not buy any shares of oxy when you sold the 1 Lalloption. Assuming the same valuesshown in PART 1 your PiL would be $ .IF THISISALOSS, ENTER YOUR RESULTASA NEGATIWE WALUE 'USE '- sizon
