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  3. a financial institution has the following portfoli

A financial institution has the following portfolio of options a stock: \table[[Type,Position,Delta of Option,\table[[Gamma...

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Accounting

A financial institution has the following portfolio of options a stock:
\table[[Type,Position,Delta of Option,\table[[Gamma of],[Option]],Vega of Option],[Call,-1000,0.5,2,0.7],[Call,-500,0.7,0.6,0.2],[Put,-1200,-0.7,1,1.1]]
Two options available:
Option 1: delta of 0.5, gamma of 0.5, and a vega of 1.
Option 2: delta of 0.2, gamma of 0.7, and a vega of 1.1.
How could the portfolio become delta, gamma, and vega neutral?
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