How many shares of underlying stock do they need to purchase, Finance Basics

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How many shares of underlying stock do they need to purchase

Problem

Suppose a market maker sold short a call option when the underlying stock price was $50, and the delta of the option was 0.6. To make their position delta neutral, how many shares of the underlying stock do they need to purchase? What is the total cost of the purchase? If they financed the purchase with borrowed money and the interest rate was 8%, what is the interest expense for one week?

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