If the delta changes from 06 to 07 what needs to be done to, Financial Management

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If the delta changes from 06 to 07 what needs to be done to

An options dealer holds 1,000 shares of a stock. The stock is trading at $70 per share. At-the-money call options have a delta of 0.60.

1. What is the number of call options the dealer must sell to create a delta hedge?

2. If the delta changes from 0.6 to 0.7, what needs to be done to maintain a delta-neutral portfolio?

3. If the stock price drops by $3 and the call price falls to $1.25, what is the delta of the call?

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Financial Management: If the delta changes from 06 to 07 what needs to be done to

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