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Betty and Bob are long 5,000 shares of XYZ stock, short 20 October 50 calls, and...

Betty and Bob are long 5,000 shares of XYZ stock, short 20 October 50 calls, and long 35 October 45 puts.

     Call   Delta

     Put  Delta

     October 45

          .60

        - .40

     October 50

          .30                       

        - .70

A. Find the equivalent share position.

They are a. long/short ________ shares.

B. Algebraically find how many October 45 calls they should buy or sell to be delta neutral.

They should a. buy/sell ________ calls.

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