Category Archives: Finance

Stock Exposures in Portfolios with Options

Arak, Marcelle
Journal of Wealth Management Vol. 6 Issue 3, p. 19-25

Describes a procedure for combining options with outright stock holdings to get an accurate view of overall exposure to each company’s equity price. Examination of long call options in a portfolio of stocks and bonds; Measurement of an investor’s exposure to a stock; Procedures for calculating effective shares.