- 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