Question: Q 4 h . For Q 4 g , how much of the total PnL is from option position, and how much is from stock

Q4h. For Q4g, how much of the total PnL is from option position, and how much is from stock positions, when underlying moves from 1000 to 1025?(2 points)
Q4i. If underlying moves up from 1000 to 1025, If you need to re-hedge to flatten delta with underlying shares, what trade do you need to do in the shares? (2 points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!