You have purchased a 40strike call with 91 days to expiration. You wish

to delta hedge,but you are also concerned about changes in volatility; thus, you want to

vega hedge your position as well。

(a) Compute and graph the 1{day holding period pro_t if you delta andvegahedge this

position using the stock and a 40{strike call with 180 days to expiration.

(b) Compute and graph the 1day holding period pro_t if you delta{,gamma{, and vega{

hedge this position using the stock, a 40strike call with 180 days toexpiration, and

a 45{strike put with 365 days to expiration.