Question

A portfolio has a short position in 500 european calls and long position in 300 puts, all on the same underlying stock, which is assumed to pay no dividend. The per-share deltas of each call and put are 0.5389 and 0.7584, respectively. How do you make the portfolio delta neutral by either buying or selling stock? Each option is written on a 100 shares of the underlying. (

Answer 1

the increased the stock

Answer 2

the increase the stock