Ibm stock currently sells for 84 dollars per share over 8, Ask an Expert

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IBM stock currently sells for 84 dollars per share. Over 8 months the price will either go up by 7.5 percent or down by -3.0 percent.

The risk-free rate of interest is 4.5 percent continuously compounded.

If you are short one call option with strike price 83 and maturity of 8 months, how many shares of stock must you buy to establish a delta-neutral position?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92763728

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