Determine the number of contract to get a zero delta

Assignment Help Financial Management

Reference no: EM131615916

You have 3000 shares of stock and desire a ZERO Delta Position. Available are Calls with a $ 1.23 premium and a Delta of 0.45. Also AVAILABLE are PUTS with a premium of $ 0.73 and a Delta of 0.28. Determine the number of contract to get a zero delta for your portfolio and tell me if you are buying or selling those contracts.

Reference no: EM131615916

Questions Cloud

How much does average homeowner pay in property taxes : With a median home price of $135,000 and property taxes at 27.29 mills, how much does the average homeowner pay in property taxes?

What is the total payment each month for rick : Rick’s bank requires that his monthly payment include an escrow deposit for the tax and insurance. What is the total payment each month for Rick?

Cost savings but also an increase in revenue : A new IS project has been proposed that is expected to produce not only cost savings but also an increase in revenue.

What is the initial amount of cash sharon will need : What is the initial amount of cash Sharon will need? What is the total cost of interest over the life of the mortgage?(Use 360 days a year.

Determine the number of contract to get a zero delta : Determine the number of contract to get a zero delta for your portfolio and tell me if you are buying or selling those contracts.

Pledging requirements have on a bank asset liquidity : what impact do the pledging requirements have on a bank’s asset liquidity?

What risks do banks face in the check-clearing process : What risks do banks face in the check-clearing process and does this justify holds on checks?

What factors are relatively more important for attracting : what factors are relatively more important for attracting and retaining core deposits as compared with purchased funds?

An investment project requires a net investment : An investment project requires a net investment of $95,000. using the discounted cash flow method for determining the payback period.

User Account

All Pages