Multiple Choice
You own 4,800 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 .955. How many $30 call option contracts do you need to hedge against a −$1 change in the price of the stock?
A) buy 50 option contracts
B) buy 503 option contracts
C) write 50 option contracts
D) write 503 option contracts
E) write 5,026 option contracts
Correct Answer:
Verified
Correct Answer:
Verified
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