You have 500 shares purchased at $ 87 per share A call with a delta of 0.7 and a strike of 87.50 sells for 0.90 (premium) A put with a delta of 0.50 and a strike of 85 sells fro 0.40 If you are LONG on the stock, Calculate on paper OR on a spreadsheet if your handwriting is illegible a delta neutral position. (how many puts and calls do you need) and what is the cost
You have 500 shares purchased at $ 87 per share A call with a delta of 0.7 and a strike of 87.50 sells for 0.90 (premium) A put with a delta of 0.50 and a strike of 85 sells fro 0.40 If you are LONG on the stock, Calculate on paper OR on a spreadsheet if your handwriting is illegible a delta neutral position. (how many puts and calls do you need) and what is the cost
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You have 500 shares purchased at $ 87 per share
A call with a delta of 0.7 and a strike of 87.50 sells for 0.90 (premium)
A put with a delta of 0.50 and a strike of 85 sells fro 0.40
If you are LONG on the stock, Calculate on paper OR on a spreadsheet if your handwriting is illegible
a delta neutral position.
(how many puts and calls do you need) and what is the cost
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