How many shares of stock must you buy to establish a, Financial Management

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How many shares of stock must you buy to establish a

IBM stock currently sells for 84 dollars per share. Over 8 months the price will either go up by 7.5 percent or down by −3.0 percent. The risk-free rate of interest is 4.5 percent continuously compounded. If you are short one call option with strike price 83 and maturity of 8 months, how many shares of stock must you buy to establish a delta-neutral position? 0.57576 0.82766 0.27288 −0.09 0.3.

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