397003 assignment 2 question 3

kirstens

The question asks "how much do you need to borrow at time 0 in order to build the hedging strategy?"
I assume that the question asks for Delta*S(0) but there's other students think it asks for V (which is Delta*S(0) - C).

Am I right or wrong??

(apology for using english, cannot type Chinese at uni)

星空飞扬

that  ASK YOU HOW MUCH YOU NEED TO BORROW, YOU ONLY HAVE C, BUT YOU NEED DETLTA TIMES C, SO YOU need to mins C