put-option

Hi, I have a 2 asset portfolio evenly weighted of stock A and stock B. If I purchase a long put, written on just stock A, with a delta of -0.536, how would I calculate the appropriate option sizing and how much it would minimize my portfolio VaR? Do I use the component VaR? Does the hedge...

I am studying p1, t1, Stulz's governance chapter and I really do not understand the part below. What is put option's undervalue and overvalue have to do with NPV? I appreciate your help. Thank you! "A trading desk’s writing of underpriced, deep-out-of-the-money puts based on traders’...