You have an equity portfolio valued at $1.22 million that ha…

You have an equity portfolio valued at $1.22 million that has a beta of .98. You have decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 3,092. The option delta is 0.639. How many option contracts must you write to effectively hedge your portfolio?

You own 200 shares of Delta stock, which is currently worth…

You own 200 shares of Delta stock, which is currently worth $33 a share. You just paid an option premium of $.55 to buy two put contracts on this stock with a strike price of $30. What is the maximum loss per share you are avoiding by purchasing the option contract?