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A market maker is trading the following ...

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题目

A market maker is trading the following three (3) positions in call and put options which are identical with respect to their underlying stock price, the strike price and the maturities: long 100 ATM call options with a percentage delta of 0.6; short 60 ATM call options; and long 50 ATM put options. Which trade will neutralize the market maker's delta?

选项

A.Buy 6.0 shares

B.Sell 6.0 shares

C.Buy 4.0 shares

D.Sell 4.0 shares

答案

D

解析

First call position delta = +100 long quantity × 0.6 = +60 position delta;Second call position delta = -60 short quantity × 0.6 = -36 position delta;Put position delta = +50 long quantity × -0.4 percentage delta = - 20 position delta; i.e., put delta = N(1) - 1 = call delta - 1 = 0.6 - 1Total position delta = +60 - 36 - 20 = +4, such that short 4 shares will neutralize delta.第一个看涨期权的delta= 100 × 0.6 = 60 头寸 delta第二个看涨期权的delta = -60 short quantity × 0.6 = -36 delta;看跌期权的delta= 50× -0.4 percentage delta = - 20 delta看跌期权的delta= N(1) - 1 = call delta - 1 = 0.6 - 1总delta 60 - 36 - 20 = 4, 那么卖 4 个股票可以达到delta中性。