AT&T LTE 10:59 AM Done Project 2 Final Exam.doc)x C. Now assume that the feeder considers dynamic delta hedging -changing the hedge position based on the put option's delta every month -place delta hedge on April 25, update on May 23, June 25, July 24, and finally close hedge on August 20. In the table below, show the hedging updates and calculate the finally calculate the net realized price on August 20. Use the cash prices, futures prices, and option premiums as premium paid/earned (cross one) , and listed in the spread sheet. Cross one of Long/Short. in thMark DatelAction Cash Market Futures Market Apr 25, 2014 CP Dec. 14 CME LC. FP Long Short Put at P, Premium paidlearmed None May 23, 2014 HR- NFC Long Shoet Put at P Prem None June 25, 2014 HRNFC Prem July 24, 2014 None Prem, paidearned- Aug 20,2014 CP- FP- 200 fed animalsEsercise Do not Exercise (cross one) Gain/Less elb Revenue from cash market Net Proceods Cash revenue+ Gains from hedging Net realized price (cents 1b) Total Gain Loss Q7. The 3rd page of the spread sheet (titled Call) lists daily futures prices (cents/lb.) of Dec 2014 CME Live Cattle futures contract and the premiums of a call option with SP-140 cents/lb. A. For each day, calculate the call option's delta and hedge ratio in the spread sheet and list the average delta and the hedge ration based on the average delta h undefined value, replace that with a period. (A: 5 Points; B: 8 Points; C: 12 points) ere. If you find an Answer: Average HR AT&T LTE 10:59 AM Done Project 2 Final Exam.doc)x C. Now assume that the feeder considers dynamic delta hedging -changing the hedge position based on the put option's delta every month -place delta hedge on April 25, update on May 23, June 25, July 24, and finally close hedge on August 20. In the table below, show the hedging updates and calculate the finally calculate the net realized price on August 20. Use the cash prices, futures prices, and option premiums as premium paid/earned (cross one) , and listed in the spread sheet. Cross one of Long/Short. in thMark DatelAction Cash Market Futures Market Apr 25, 2014 CP Dec. 14 CME LC. FP Long Short Put at P, Premium paidlearmed None May 23, 2014 HR- NFC Long Shoet Put at P Prem None June 25, 2014 HRNFC Prem July 24, 2014 None Prem, paidearned- Aug 20,2014 CP- FP- 200 fed animalsEsercise Do not Exercise (cross one) Gain/Less elb Revenue from cash market Net Proceods Cash revenue+ Gains from hedging Net realized price (cents 1b) Total Gain Loss Q7. The 3rd page of the spread sheet (titled Call) lists daily futures prices (cents/lb.) of Dec 2014 CME Live Cattle futures contract and the premiums of a call option with SP-140 cents/lb. A. For each day, calculate the call option's delta and hedge ratio in the spread sheet and list the average delta and the hedge ration based on the average delta h undefined value, replace that with a period. (A: 5 Points; B: 8 Points; C: 12 points) ere. If you find an Answer: Average HR