You short 200 contracts of a call option on Stock XYZ. The contract multiplier is 100, i. e. each contract is on 100 shares of the stock. Strike price is $50, and the option is currently at the money, i. e. the stock price is $50 right now. Option has 0.08 years to expiration, risk-free interest rate is zero, and volatility of stock returns is 15% per year. a. Using Black Sholes option pricing model, calculate the delta of the call position and determine the number of shares of the underlying stock that you need to buy to hedge the option position initially.
b. Suppose that price of the stock increases to $51. Time to expiration is now 0.07 years. The other parameters are unchanged. Recalculate delta and determine the number of shares you need to buy (sell) to trade to maintain the hedge.

Gather reliable information to brent make his decision. to gather this information, use newspapers, call insurance companies or look at their web sites, and review consumer magazines and web sites. also, look at the manufacturer web site or for information about gas mileage. list the sources you use and take notes.

Suppose that a worker in agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in zenland can produce either 5 units of organic grain or 15 units of incense per year. there are 20 workers in agland and 10 workers in zenland. currently the two countries do not trade. agland produces and consumes 100 units of grain and 20 units of incense per year. zenland produces and consumes 50 units of grain and no incense per year. if each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by a. 30 units of grain and 100 units of incense. b. 30 units of grain and 150 units of incense. c. 50 units of grain and 90 units of incense. d. 50 units of grain and 130 units of ince

Refer to the payoff matrix. suppose that speedy bike and power bike are the only two bicycle manufacturing firms serving the market. both can choose large or small advertising budgets. is there a nash equilibrium solution to this game?