Assume the current price of a stock is $20 and a bank has written 10,000 call...

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Assume the current price of a stock is $20 and a bank has written 10,000 call options on this stock with a strike price of $18. The bank wants to use delta hedging to protect itself. The price changes and the corresponding deltas of the option are as follows over the first three weeks. (The bank rebalances every week). The risk-free rate is 5%. Time Price Delta 0 20 0.60 1 21 0.65 2 18 0.52 3 16 0.45 Create a table that shows the stock positions necessary to delta hedge every week and the weekly and cumulative costs of delta hedging. Assume the current price of a stock is $20 and a bank has written 10,000 call options on this stock with a strike price of $18. The bank wants to use delta hedging to protect itself. The price changes and the corresponding deltas of the option are as follows over the first three weeks. (The bank rebalances every week). The risk-free rate is 5%. Time Price Delta 0 20 0.60 1 21 0.65 2 18 0.52 3 16 0.45 Create a table that shows the stock positions necessary to delta hedge every week and the weekly and cumulative costs of delta hedging.