A portfolio contains 10,000 shares of XYZ stock; the portfolio manager buys 100 XYZ puts. If the put delta is -0.220, what is the position delta?

Question

Quizplus · Accepted Answer

The position delta is calculated by multiplying the number of shares by the delta of the stock (which is 1 for shares) and adding the product of the number of puts and the put delta. Thus, 10,000 * 1 + 100 * (-0.220) = 10,000 - 22 = 7,978.

A Portfolio Contains 10,000 Shares of XYZ Stock; the Portfolio