Rerured :

a.price of the call option?

b.The number of shares needed for delta hedge the total cost of purchasing these shares and the cost of writing off the option .

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Stock prices for the following 10 weeks of this call option are given in TABLE 1 as follows: TABLE 1 Stock Week Prices 1 21.50 2 22.00 3 22.50 4 23.00 5 23.50 6 24.00 7 24.50 8 25.00 9 25.50 10 30.00 Stock prices for the following 10 weeks of this call option are given in TABLE 1 as follows: TABLE 1 Stock Week Prices 1 21.50 2 22.00 3 22.50 4 23.00 5 23.50 6 24.00 7 24.50 8 25.00 9 25.50 10 30.00

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To calculate the price of the call option and the number of shares needed for delta hedging we can u... View the full answer