INVESTMENTS-CONNECT PLUS ACCESS
INVESTMENTS-CONNECT PLUS ACCESS
11th Edition
ISBN: 2810022611546
Author: Bodie
Publisher: MCG
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Chapter 21, Problem 19PS
Summary Introduction

Case summary:

Mr. M is considering preparing delta-hedge strategy for safeguarding the portfolio against uncertainties of market volatility. Mr M. has 51,750 shares and he is considering taking short on call options which has delta of 0.69.

Character in this case: Mr. M

Adequate information:

Delta of call option is 0.69

Number of shares is 51,750

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