Suppose a call option has a Delta of 0.55, a Gamma of 0.0040, and a Theta of -504. If you write this call today, and hedge yourself by buying 0.55 shares of the underlying, what will your approximate profit be one trading day later if the underlying has risen $40?

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Heres an approximation of your profitconsidering the deltagammathetaand underlying price change Init... View the full answer