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Iteru [2.4K]
2 years ago
12

To create a delta-neutral portfolio, an investor who has written 15,000 call options (that are currently exactly at-the-money) w

ill have to?
Business
1 answer:
Shtirlitz [24]2 years ago
8 0

To create a delta-neutral portfolio, an investor sold 15,000 call options (now exactly at the money) long 7,500

To maintain a delta-neutral position, a delta totaling -200 then: Suppose you find an at-the-money put option on Company X trading at a delta of -0.5. Buying 4 of these put options will result in a total delta of (400 x -0.5) or -200.

Gamma Neutral Portfolios are option positions that do not change delta when the underlying security moves significantly up or down. Gamma-neutrality is a process known as gamma-hedging, usually achieved by adding additional option contracts to a portfolio as opposed to the current position.

Delta Hedging is an options strategy aimed at neutralizing direction by establishing opposite long and short positions in the same underlying. By reducing directional risk, delta hedging can isolate changes in volatility for options traders.

Learn more about delta-neutral portfolio at

brainly.com/question/15738186

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A company has increasing marginal returns. Total production is 5 units when the first worker is hired. Total production rises to
zhuklara [117]

Answer:

Total production should be greater or equals to 20 units.

Explanation:

Increasing marginal returns is an improvement in the quantity of goods produced by a company and it typically occurs over the short period of time when the amount of a variable input is initially added to a fixed input.

so given that total production increases when the first and the second workers were hired, therefore total production should be more than 20 units

5 0
4 years ago
Which one of the following represents a cash outflow from a corporation? Multiple Choice Issuance of new securities Payment of d
Mila [183]

Answer:

B) Payment of dividends

Explanation:

Dividend is the reward, (which can either be cash or non-cash) paid by a corporation out of profit or reserve at the end of a period to its shareholders. This share of profit is a reward received by investors as a result of their investment in a corporation

Where dividend is paid out of the cash asset of the corporation, it will represent cash outflow from the corporation.

Sometimes a corporation will want to save money by paying script dividend (i.e. share dividend) such does not involve cash outflow, but issue of shares.

4 0
4 years ago
Which of these is NOT a major export of the United States
Lemur [1.5K]
Agricultural products is the answer
4 0
3 years ago
Bubba is a shrimp fisherman who catches 4,000 pounds of shrimp per year. He can sell the shrimp for $5 per pound. His average to
Galina-37 [17]

Answer:

Bubba’s annual total revenue is c. $20,000

Explanation:

Revenue is the total amount that comes from sales, regardless of cost.

Bubba catches 4,000 pounds and sell them for $5 per pound, so the total amount (revenue) he receives from selling them is 4,000 * 5 = $20,000

Note: The information about the $3 cost is not necessary to calculate revenue

8 0
4 years ago
Which eoc configuration aligns with the on-scene incident organization
ludmilkaskok [199]

<u>Answer:</u>

<em>ICS or ICS-like EOC structure aligns with the on-scene incident organisation.</em>

<u>Explanation:</u>

A Emergency operation centre focus (EOC) is a headquarters and control office in charge of completing the standards of crisis readiness and crisis the board, or calamity the executives capacities at a key level during a crisis, and guaranteeing the congruity of activity of an organization, political.

ICS is far reaching being used from law implementation to consistently business, as the essential objectives of clear correspondence, responsibility, and the productive utilization of assets are regular to the occurrence and crisis the board just as every day activities.

5 0
3 years ago
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