How many shares of stock you own in your hedging portfolio


Problem

Your company sold call options on a stock. The option expires in 6 months, the risk-free rate is 6%, and the strike price is $50. The stock is currently trading at $52 dollars and has a volatility of 35%. How many shares of stock should you own in your hedging portfolio per call option sold?

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Portfolio Management: How many shares of stock you own in your hedging portfolio
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