A bank has sold USD 300,000 of call options on 100,000 equities. The equities trade at 50, the option strike price is 49, the maturity is in 3 months, volatility is 20%, and the interest rate is 5%. How does it the bank delta hedge? (round to the nearest thousand share) a. Buy 65,000 shares (ANS) b. Buy 100,000 shares c. Buy 21,000 shares d. Sell 100,000 shares I am used to the hedge ratio h = corr * stdev spot/stdev future. I see that you definitely would buy to hedge but I cannot arrive at the answer. Any equations or tips appreciated.