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Postby AMITAG1990 » Sat Nov 03, 2012 7:42 pm

please tell me, if we purchase a 200 call option contract each on 10 shares with time to maturity of 60 days and the delta of a option on 1 share is 0.5 then what action must take on underlying stock to hedge this..??
whether we should long or short the stock..??
in my opinion it should be shorted but ans is long position.

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Re: hedging

Postby swarnendupathak » Mon Nov 05, 2012 10:00 am

For me also we should short...


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Re: hedging

Postby balajismz » Mon Nov 05, 2012 10:22 am

Depends on ur position in the shares, if you are short in shares then long call options

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Re: hedging

Postby content.pristine » Mon Nov 05, 2012 7:58 pm

You are right..
We are aware of this error, but can't fix it til the season end otherwise it would erase everyone's performance in that quiz til now.

Thus, when you go long a stock, you must short call options..

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