You have a stock portfolio valued at $2,500,000 with a of 1 12 You have decided to hedge with a put S P100 index option with a strike price of 325 , delta of 0 83 How many contracts would you require to hedge If after 4 weeks the portfolio is worth $2,420,000, the index is 315 and the premium and delta of the options are $23 50 and 0 91, what is the new number of contracts that you would need What is the value of the hedged portfolio after 4 weeks Assume that the options contract multiplier is $100

Question

You have a stock portfolio valued at $2,500,000 with a of 1 12  You have decided to hedge with a put S  P100 index option with a strike price of 325 , delta of 0 83    How many contracts would you require to hedge    If after 4 weeks the portfolio is worth $2,420,000, the index is 315 and the premium and delta of the options are $23 50 and 0 91, what is the new number of contracts that you would need    What is the value of the hedged portfolio after 4 weeks    Assume that the options contract multiplier is $100

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Question

- You have a stock portfolio valued at $2,500,000 with a of 1.12. You have decided to hedge with a put S&P100 index option with

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