You Hold a Portfolio Consisting of 300 Calls (Short)and 200 $+ 0.62$

question 16

Multiple Choice

You hold a portfolio consisting of 300 calls (short) and 200 puts (long) on a given stock.The delta of the calls is $+ 0.62$ and the delta of the puts is $- 0.57$ .To delta hedge this portfolio,you should

• A)Short 74 shares of the stock.
• B)Buy 300 shares of the stock.
• C)Buy 500 shares of the stock.
• D)Buy 74 shares of the stock.

---

Definitions:

Class JFrame

A class in the Java Swing library used for creating a window where components like buttons and text fields can be added.

SetSize

A method typically used in graphical user interface programming to specify the dimensions of a component, like a window or a button.

Method

A block of code defined within a class that performs a specific task and can be executed when called upon.

GridLayout Manager

A layout manager in programming that arranges components in a rectangular grid, with an equal size for each component.