You Own 9,500 Shares of GO Stock Which Is Currently

question 64

Multiple Choice

You own 9,500 shares of GO stock which is currently valued at $48 a share. The $50 put has a premium of $2.50 and a put delta of -.58. What position should you take in $50 put contracts to hedge your stock against a $1 decrease in price?

• A) buy 163 contracts
• B) buy 1,637 contracts
• C) buy 16,379 contracts
• D) write 163 contracts
• E) write 1,637 contracts

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