IBM stock currently sells for 44 dollars per share. Over 5 month(s) the price will either go
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IBM stock currently sells for 44 dollars per share. Over 5 month(s) the price will either go up by 13.5 percent or down by −6. 5 percent. The risk-free rate of interest is 7.0 percent continuously compounded.
If you are short one call option with strike price 45 and maturity 5 months how many shares of stock must you buy to establish a delta-neutral position?
Related Book For
Public Finance A Contemporary Application of Theory to Policy
ISBN: 978-1285173955
11th edition
Authors: David N Hyman
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