Suppose you are short 50 contracts on a 1-year 40-delta call option on TSLA and long 20 contracts on TSLA stock. How much will your option position increase in value if TSLA stock price goes up by $1 (use negative number if value decreases; 1 contract = 100 shares)

Answer rating: 100% (QA)

Assuming the TSLA stock price goes up by 1 we can calculate the change in the value of the 40delta c... View the full answer