Q:My investment portfolio has one share of one call and one put, what would be the delta of my portfolio ?
delta of call:0.45
delta of put: -0.14
My thought process:
To begin with since im dealing with a single share this automatically means that the delta of this share is 1 [ according to what i found in the book of hull] therefore would my portfolio delta be : share number x call delta x put delta = portfolio delta
1 x 0.45 x -0.14 = 0.31
It feels as if im missing something very important and ive been over the same chapter for hours now.