Suppose a call covers 100 shares and the option delta is given as, say, .69484.
Then in order to delta hedge 10 of these shorted calls, one must buy .69484*10*100 shares.
Shouldn't it be:
(.69484/100)*10*100
or just
.69484*10
What i'm confused at is, if .69484 is the delta for a call that covers 100 shares, then shouldn't .0069484 be the delta of a call that covers only 1 share?
Then in order to delta hedge 10 of these shorted calls, one must buy .69484*10*100 shares.
Shouldn't it be:
(.69484/100)*10*100
or just
.69484*10
What i'm confused at is, if .69484 is the delta for a call that covers 100 shares, then shouldn't .0069484 be the delta of a call that covers only 1 share?
Delta of an option that covers more than one share
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