Multiple Choice
You own 3,550 shares of a stock that is currently priced at $34 a share. Given this price, the option delta for a $30 call option on this stock is .923. How many $30 call option contracts do you need to hedge against a −$1 change in the price of the stock?
A) buy 4 option contracts
B) buy 38 option contracts
C) write 4 option contracts
D) write 38 option contracts
E) write 385 option contracts
Correct Answer:
Verified
Correct Answer:
Verified
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