You are a treasury manager at a US based firm that has significant transactions in China and in the Yuan $($CNH$).$

Typically, your policy is to delta hedge your foreign currency exposure with put options. However, recent

developments have increased risk and therefore volatility of the USD$/$CNH exchange rate. You are therefore going to

begin gamma hedging to reduce the frequency of hedge rebalancing. Using the Puts and Calls from question #$1,$ the

delta and gamma of the Call are $\mathrm{.}50$ and $1\mathrm{.}50$ respectively, and the delta and gamma of the Put are $-\mathrm{.}46$ and $1\mathrm{.}50$

respectively. How much do you need to buy or sell of the call and put options to hedge the exposure you have in

foreign currency $($i$.$e$.,$ calculate the weights$)?$