Solved: What is the required dollar amount and long or short in, Finance Basics

+44 141 628 6080
[email protected]

What is the required dollar amount and long or short in

Suppose that an investor holds $4,000 option that has delta of 0.6 and vega of 1.4. The investor wants to make his portfolio both delta and vega neutral. Suppose that he wants to use another option to achieve the objectives and suppose that this option has a delta of 0.9 and vega of 1. What is the required dollar amount and long or short in this option and in futures?

Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the required dollar amount and long or short in

Reference No:- TGS02863546

Now Priced at $10 (50% Discount)

Recommended (94%)

Rated (4.6/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : The firm pays out 50 of its earnings as dividends what is

sparrow products industries stock is currently selling for 57 it just paid its annual dividend of 4 after reporting an

Q : Calculate the net income for this proposed project round to

for my practice problems i have been assigned any help or tips on how to solve these problems is very appreciated1

Q : Solve the system of equations using the matlab functions or

questions1 evaluate the following mathematical expression using matlab commands display your results by omitting

Q : Why are loans such a high percentage of total assets at the

why are loans such a high percentage of total assets at the typical bank what four broad classes of loans do banks

Q : What is the required dollar amount and long or short in

suppose that an investor holds 4000 option that has delta of 06 and vega of 14 the investor wants to make his portfolio

Q : What parts of financial statements are looked at when

what parts of financial statements are looked at when making a capitol investment

Q : Jenny is planning to retire at 65 and her goal is to have

jenny is 40 years old and she just started a new job and her employer offers a 403b jenny is planning to retire at 65

Q : The stock pays a quarterly dividend of 21 per share and is

seven months ago you purchased 220 shares of mitchum trading for 5379 per share the stock pays a quarterly dividend of

Q : The company has a 35 tax rate and a discount rate of 12

megatrac co is evaluating tow different machines machine a costs 215000 has a four year life and has a pretax operating

1934655

Questions
Asked

3,689

Active Tutors

1450753

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Review the documentary series - the baby human

Watch the following clip from the documentary series "The Baby Human: To FeelLinks to an external site."

Discussion about research on memory and aging

Question: Which of the following has been found in much of the research on memory and aging? Question options:

What results of a research study would be confounded

The results of a research study would be confounded if Question options: the experimenter's interpretation of the data was not supported

What psychological researcher might operationally define

Question: A psychological researcher might operationally define liking for a stranger as which of the following:

Concerns regarding his aggressive behavior

A 17-year-old boy with no significant past medical history presents with his parents for concerns regarding his aggressive behavior.

How children can be empowered by adults

Children can be empowered by adults who consistently let things go, even when they behave badly. Power can be a problem for children

Conducting a formative and/or summative evaluation study

Explain the purpose and potential benefits of conducting a formative and/or summative evaluation study