question archive 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