You own 1,500 shares of ABC stock that is currently priced at $27 a share.Given this price,the option delta for a $25 call option on this stock is 0.724.How many $25 call options do you need to hedge against a -$1 change in the price of the stock?
A) buy 1,500 options
B) buy 2,482 options
C) write 1,500 options
D) write 2,072 options
E) write 3,295 options
Correct Answer:
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