Repeat Problem 17.13 for a financial institution with a portfolio of short positions
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Repeat Problem 17.13 for a financial institution with a portfolio of short positions

Problem 17.14.

Repeat Problem 17.13 for a financial institution with a portfolio of short positions in put and call options on a currency. 
Hint
A short position in either a put or a call option has a negative gamma. From Figure 17.8, when gamma is negative the hedger gains from a small change in the stock price and loses from a large change in the stock price....

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