Question: Problem 4 . 5 ( Delta hedging an option position ) A trader sells an European call option on TSLA stock on 1 - Feb

Problem 4.5(Delta hedging an option position)
A trader sells an European call option on TSLA stock on 1-Feb-2022, with maturity 28-Feb-2022, with strike $870.00 for a premium of $81.54. Use the TSLA stock prices from Problem 4.3.
The trader assumes an implied volatility =45%, and zero risk-free rate r=0. Use the time to maturity 19 days, or T=19252 years.
The trader would like to Delta hedge the option dynamically, setting it up at inception (1-Feb-2022) and updating the hedge every day.
How many shares are needed on 1-Feb-2022 to Delta hedge the option? Is the position in stock long or short?
How many shares are in the Delta hedge at maturity on 28-Feb-2022?
Problem 4 . 5 ( Delta hedging an option position

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