Multiple Choice
Laura has an equity portfolio valued at $11.2 million that has a beta of 1.32.She has decided to hedge this portfolio using SPX call option contracts.The S&P 500 index is currently 1402.The option delta is .582.How many option contracts must Laura write to effectively hedge her portfolio?
A) 37 contracts
B) 42 contracts
C) 175 contracts
D) 181 contracts
E) 191 contracts
Correct Answer:
Verified
Correct Answer:
Verified
Q6: Which option price(s)will increase when the interest
Q10: An increase in which one of the
Q15: You know that a call will finish
Q22: How frequently should you consider rebalancing the
Q34: A stock with a current price of
Q36: What is the put option premium given
Q40: Which two of the following are the
Q51: Which one of the following situations will
Q53: Which one of the following best describes
Q75: All else constant, which one of the