Mr. M is considering preparing delta-hedge strategy for safeguarding the portfolio against uncertainties of market volatility. Mr. M. is taking long on put options which has delta of -0.65. Character in this case: Mr. M Adequate information: Delta of put option is -0.65 Stock price falls by 6

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Chapter 21, Problem 18PS

Summary Introduction

Case summary:

Mr. M is considering preparing delta-hedge strategy for safeguarding the portfolio against uncertainties of market volatility. Mr. M. is taking long on put options which has delta of -0.65.

Character in this case: Mr. M

Adequate information:

Delta of put option is -0.65

Stock price falls by 6

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