You Own 1,200 Shares of Banner Co

question 63

Multiple Choice

You own 1,200 shares of Banner Co.stock that is currently priced at $42 a share.Given this price,the option delta for a $40 call option on this stock is .664.How many $40 call options do you need to hedge against a -$1 change in the price of the stock?

• A)buy 1,613 options
• B)buy 1,713 options
• C)buy 1,8.7 options
• D)write 1,713 options
• E)write 1,807 options

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