Question: What is net dollar gain or cost required to create a short put delta hedge against a 100 short put position? Assume puts are priced
What is net dollar gain or cost required to create a short put delta hedge against a 100 short put position? Assume puts are priced at $1.98, the delta is 0.489, the stock price is $34.50, and no cost to short stock
The answer is $2,319.58 gain I want to know why ?? Thank you !!
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
