Question
What is net dollar gain or cost required to create a short put delta hedge against a 100 short put position? Assume puts are priced
What is net dollar gain or cost required to create a short put delta hedge against a 100 short put position? Assume puts are priced at $1.98, the delta is 0.489, the stock price is $34.50, and no cost to short stock
The answer is $2,319.58 gain I want to know why ?? Thank you !!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost Effectiveness Analysis Methods And Applications
Authors: Henry M. Levin, Patrick J. McEwan
2nd Edition
0761919333, 978-0761919339
