Multiple Choice
You own 1,300 shares of ABC stock that is currently priced at $36 a share. Given this price, the option delta for a $34 call option on this stock is .724. How many $34 call options do you need to hedge against a −$1 change in the price of the stock?
A) buy 1,570 options
B) buy 2,072 options
C) write 1,769 options
D) write 2,072 options
E) write 2,439 options
Correct Answer:
Verified
Correct Answer:
Verified
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