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Question
You own 4,800 shares of a stock that is currently priced at $34 a share. Given this price, the option delta for a $30 call option on this stock is .955. How many $30 call option contracts do you need to hedge against a -$1 change in the price of the stock?A. buy 50 option contracts
B. buy 503 option contracts
C. write 50 option contracts
D. write 503 option contracts
E. write 5,026 option contracts
Answer
This answer is hidden. It contains 2 characters.
Related questions
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Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?
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Q:
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An analyst gathered the following year-end price level data for an economy. What is the economy's annual inflation rate for 2012?A. 3.22%B. 3.42%C. 3.68%D. 3.87%E. 3.92%
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Assume the inflation rate in 2012 is 2.1 percent. If the nominal GDP grew 3.2 percent and nominal wages grew 2.6 percent, what are the approximate real growth rates of GDP and wages?
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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E. elect to continue holding their bonds; they want to continue receiving the interest payments
Q:
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