What is the portfolio position delta

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A stock was trading at $82.60 while put option with $85 exercise price is traded at $4.00 with a delta of 0.6 and call option with $80 exercise price is traded at $4.60 with a delta of -0.75. The stock price changes to $81.14.

1) Consider a portfolio composed of:

2,010 shares of stocks

40 Call options

74 Put options

a) What is the portfolio position delta?

b) Using the portfolio position delta, what is the portfolio value before the stock price changed?

c) What is the portfolio value after the stock price changed?

Reference no: EM131844028

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