You have 500 shares purchased at $ 87 per share A call with a delta of 0.7
Fantastic news! We've Found the answer you've been seeking!
Question:
You have 500 shares purchased at $ 87 per share
A call with a delta of 0.7 and a strike of 87.50 sells for 0.90 (premium)
A put with a delta of 0.50 and a strike of 85 sells fro 0.40
If you are LONG on the stock, Calculate a deltaneutralposition.
(how many puts and calls do you need) and what isthecost?
Expert Answer:
To create a deltaneutral position when you are long on the stock you need to determine the number of ... View the full answer
Posted Date:
