Question
You own 1,300 shares of ABC stock that is currently priced at $36 a share. Given this price, the option delta for a $34 call
You own 1,300 shares of ABC stock that is currently priced at $36 a share. Given this price, the option delta for a $34 call option on this stock is .724. How many $34 call options do you need to hedge against a $1 change in the price of the stock?
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
