You Own 1,800 Shares of Textile Stock, Which Is Currently

question 39

Multiple Choice

You own 1,800 shares of Textile stock, which is currently, valued at $62 a share. The $65 put has a premium of $4.26 and a put delta of −.60. What position should you take in $65 put contracts to hedge your stock against a $1 decrease in price?

• A)buy 3 contracts
• B)buy 30 contracts
• C)buy 300 contracts
• D)write 3 contracts
• E)write 30 contracts

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Weather

The state of the atmosphere at a particular place and time, including temperature, precipitation, humidity, and wind.

Limestone

A sedimentary rock primarily comprising calcium carbonate (CaCO3), often formed from the skeletal remains of marine organisms.

Oceans Salty

The condition of seawater having high concentrations of dissolved salts, primarily sodium chloride, resulting from processes such as rock weathering and volcanic activity.

Chemical Elements

Substances consisting of atoms which have the same number of protons in their atomic nuclei, representing the simplest forms of matter that cannot be broken down using chemical reactions.