Multiple Choice
You own 800 shares of Bradley Co. stock that is currently priced at $33 a share. Given this price, the option delta for a $35 call option on this stock is .66. How many $35 call options do you need to hedge against a −$1 change in the price of the stock?
A) buy 1,212 options
B) buy 1,813 options
C) buy 1,847 options
D) write 1,212 options
E) write 1,847 options
Correct Answer:
Verified
Correct Answer:
Verified
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