You hold a portfolio consisting of 300 calls (short) and 200 puts (long) on a given stock. The delta of the calls is +0.62 and the delta of the puts is -0.57. To delta hedge this portfolio, you should

A. Short 74 shares of the stock.

B. Buy 74 shares of the stock.

C. Buy 300 shares of the stock.

D. Buy 500 shares of the stock.

Stock XYZ is currently worth $25. The six-month European call option with strike price K= $ 27 is priced at $5. The six-month European put with strike price K= $ 27 is priced at $7. The continuously compounded rate of interest is 2%. Let PV(K) denote the present value of the strike price, Based on this data, which profitable arbitrage trading strategy is available?

A. Buy Stock, Sell Put, Buy Call and Borrow PV(K)

B. Sell Stock, Buy Put, Buy Call and Lend PV(K)

C. Buy Stock, Buy Put, Sell Call and Borrow PV(K)

D. Sell Stock, Sell Put, Buy Call and Lend PV(K)