question archive Delta of a call option is 0

Delta of a call option is 0

Subject:FinancePrice: Bought3

Delta of a call option is 0.85. Stock price is currently $50. How much money do you need to borrow to hedge a short position in 200 call contracts (each contract is for 100 shares of stock), provided that you finance the hedge entirely with borrowed funds?

 

a.850,000

b.1,000,000

c.500,000

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