An option trader creates a delta-hedged covered call (or “bu…

An option trader creates a delta-hedged covered call (or “buy-write”) in order to short 200 call options on a stock with a spot price of $50. The stock’s log-return has a volatility of 60 percent per year. The trader chooses to short the OOM calls with a strike price of $70 and five days until expiration (assuming 252 trading days in a year). The appropriate risk-free rate is 4 percent per year. If the price of the underlying were to immediately fall by $5, approximately what gain or loss would the trader experience? Use delta and gamma to calculate the approximation. Enter your answer as a number of dollars, rounded to the nearest $0.0001. Enter gains as positive amounts and losses as negative amounts.

An option trader creates a delta-hedged covered call (or “bu…

An option trader creates a delta-hedged covered call (or “buy-write”) in order to short 300 call options on a stock with a spot price of $100. The stock’s log-return has a volatility of 60 percent per year. The trader chooses to short the OOM calls with a strike price of $130 and five days until expiration (assuming 252 trading days in a year). The appropriate risk-free rate is 4 percent per year. If the price of the underlying were to immediately fall by $10, approximately what gain or loss would the trader experience? Use delta and gamma to calculate the approximation. Enter your answer as a number of dollars, rounded to the nearest $0.0001. Enter gains as positive amounts and losses as negative amounts.

Consider the wave function, with SI units: y(x,t) = (0.210)…

Consider the wave function, with SI units: y(x,t) = (0.210)cos(0.299x – 261t + 5.36) Determine the propagation speed (units: m/s) of this wave. NOTE: Watch correct use of rounding and significant figures Enter numerical answer in proper decimal format, not scientific notation Do not enter units with the answer