You hold a portfolio of options on Tesla stock. 200 short calls and 300 long puts....

 

Transcribed Image Text:

You hold a portfolio of options on Tesla stock. 200 short calls and 300 long puts. The delta of the calls is 0.38 and the delta of the puts is -0.63. In order to delta hedge this portfolio what should you do? You hold a portfolio of options on Tesla stock. 200 short calls and 300 long puts. The delta of the calls is 0.38 and the delta of the puts is -0.63. In order to delta hedge this portfolio what should you do?

Answer rating: 100% (QA)

underlying asset which in this case is Tesla stock The goal is to neutralize the overall delta of yo... View the full answer